Arabica holds near multi-decade high; sugar and cocoa gain
Adds comments and closing prices
LONDON, Nov 26 (Reuters) - Arabica coffee futures closed up for the fifth consecutive session on Tuesday, creeping back towards the previous session's multi-decade peak, with the market buoyed by tightening supplies. Sugar and cocoa also rose.
COFFEE
* March arabica coffee KCc2 settled up 4.05 cents, or 1.3%, at $3.0885 per lb.
* Prices peaked at $3.1125 on Monday, the highest nominal price since the late 1970s at least.
* Dealers said supplies were tightening, with Brazilian farmers holding back sales in the hope that prices will climb further while shipping delays and a shortage of containers was also slowing the flow from the world's top producer.
* Concern that next year's harvest in Brazil could be smaller than previously expected has also contributed to the recent run-up in prices.
* "Despite the excellent flowering due to recent rains in Brazil, there are concerns that the flowers may not attach to the branches, which might lead to production losses in the next season," ING said in a note.
* January robusta coffee LRCc1 rose 1.3% at $5,175 a metric ton.
SUGAR
* March raw sugar SBc1 settled up 0.42 cent, or 2%, at 21.57 cents per lb, the first price gain after five previous sessions of losses.
* Dealers noted that data on sugar production in Centre-South Brazil in the first half of November is expected to be issued by industry group Unica this week.
* Sugar production in the areais expected to have fallen by 55.5% year on year to 979,000 metric tons in the first half of November, an S&P Global Commodity Insights survey showed.
* Datagro expects a recovery in sugar production in Brazil in 2025/26 to 42.0-43.2 million metric tons.
* Citi, however, has a less optimistic view. It said that after the drought, there is now too much rain, which can hurt the crop.
* "We re-iterate our three-month point prices for raw sugar at $0.24/lb and revise up our 12-month forecast to $0.25/lb."
* March white sugar LSUc1 gained 1.8% at $555.20 a ton.
COCOA
* March London cocoa LCCc2 settled up 232 pounds, or 3.1%, to 7,637 pounds per ton, having hit a five-month high of 7,678 pounds.
* Dealers said the market was supported by concerns that crops in Ivory Coast and Ghana could be smaller than had been expected.
* March New York cocoa CCc2 rose 2.9% to $9,236 a ton.
Reporting by Nigel Hunt and Marcelo Teixeira
Editing by David Goodman and Mohammed Safi Shamsi
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