Robusta coffee rises on heavy rains in Vietnam; sugar also up
Adds comments and closing prices
LONDON, Oct 30 (Reuters) -Robusta coffee futures closed up on Wednesday as heavy rains in top producer Vietnam dented the outlook for the coming harvest.
Arabica coffee, cocoa and sugar also rose.
COFFEE
* January robusta coffee LRCc2 settled up $55, or 1.3%, at $4,453 a metric ton, edging further away from last week's 2-1/2 month low of $4,296.
* Dealers said some support was provided by adverse weather in top robusta producer Vietnam, where the harvest is due to gather pace next month.
* "Tropical Storm Trami has brought heavy rains to the northern Central Highlands with a potential impact on robusta coffee," LSEG Commodities Research & Forecast said in a note.
* More rain is expected in the next week, increasing the probability of further flooding and crop damage, LSEG added.
* December arabica coffee KCc1 rose 0.6% to $2.496 per lb.
COCOA
* March London cocoa LCCc2 settled up 51 pounds, or 1%, to 5,383 pounds per ton, after touching a two-week high of 5,414 pounds.
* Dealers said there remained no clear consensus on whether there will be a global surplus or deficit in the current 2024/25 season, contributing to continued volatility in prices.
* A technical note from Sucden Financial said the market was struggling to sustain a breach of key resistance at 5,359 pounds. "This level is crucial for determining further strength in the upside trend in the near term," the broker said.
* December New York cocoa CCc1 rose 1.7% to $7,391 a ton, its fourth consecutive daily gain.
SUGAR
* March raw sugar SBc1 settled up 0.14 cent, or 0.6%, at 22.22 cents per lb.
* Dealers said sluggish demand was helping to contain prices, though the market was underpinned by recent rains that could curtail cane crushing in Brazil.
* "The market could continue to drift for a time as the market waits to see how Brazilian rain will continue to develop. There was good rain over the weekend and more mills most likely stopped crushing," said the McDougall Global View Sugar Report.
* December white sugar LSUc1 rose 1% to $569.90 a ton.
Reporting by Nigel Hunt and Marcelo Teixeira; Editing by Barbara Lewis, David Goodman and Shailesh Kuber
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
