Robusta coffee hits 1-1/2 month low amid Brazil rain forecasts, Vietnam season start

Reuters

Robusta coffee hits 1-1/2 month low amid Brazil rain forecasts, Vietnam season start

2024 10월 9, 오후 1:04 GMT

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LONDON, Oct 9 (Reuters) -Robusta coffee futures on ICE hit their lowest in more than 1-1/2 months on Wednesday as the season in top exporter Vietnam gets under way and more rain is forecast for No. 3 exporter Brazil.

COFFEE

* November robusta coffee LRCc1 fell 0.5% to $4,832 a metric ton at 1214 GMT, having hit its lowest since Aug. 20 earlier at $4,800.

* LSEG analysts said that after record drought levels impacted key parts of Brazil this year, rains were likely to intensify considerably through December-February.

* The rains are expected to start hitting Brazil as early as this week.

* "The only downside risk to monitor is the potential for flooding from Southeast into Central-West Brazil, with damage to coffee/sugarcane the greatest threat," the said.

* December arabica coffee KCc1 edged up 0.3% to $2.4905 per lb, having settled up 1.5% on Tuesday.

* Arabica is benefiting from short covering after the recent weakness, but the bearish tone is expect to persist as the weather in top arabica producer Brazil improves, dealers said.

SUGAR

* March raw sugar SBc1 fell 1.6% to 22.13 per lb, having hit a three week low earlier of 21.17.

* Brazil's rain forecasts are also weighing on sugar as the country is also the world's largest producer of the sweetener.

* Brazilian mills have hedged 38.5% of the expected sugar exports in the 2025/26 season, said risk advisory firm Archer Consulting.

* December white sugar LSUc1 fell 1.9% to $564.50 a ton.

COCOA

* March London cocoa LCCc2 rose 2.8% to 4,673 pounds a metric ton, edging away from an eight-month low hit last week.

* Above average rainfall last week in most of top grower Ivory Coast’s main cocoa producing regions boosted farmers’ hopes of higher output in the current October to March season.

* Brazil cocoa processing in the third quarter fell 13.5% year-on-year to 55,300 metric tons, AIPC said.

* December New York cocoa CCc1 rose 2.1%, to $7,200 a ton.

Reporting by Maytaal Angel;
Editing by Alison Williams

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