Robusta coffee hits highest in at least 16 years

NEW YORK — Robusta coffee futures on ICE hit their highest in at least 16 years on Monday amid tight supplies in top producer Vietnam and export delays, while London cocoa steadied off recent record highs.

COFFEE: March robusta futures settled up $92 or 2.9% at $3,220 a metric ton, having earlier hit $3,229 — the highest since Jan. 2008 when the current form of the contract first started trading.

Continued attacks by Iranaligned Houthis in the Red Sea are boosting prices by slowing down shipments of robusta coffee from Asia to Europe, dealers said, while farmers in Vietnam remain reluctant to sell.

ICE robusta coffee speculators raised their net long position by 9,486 lots to 43,722 lots as of Jan. 16.

March arabica coffee rose 3.8% at $1.9225 per pound (lb), hitting the highest so far this year at $1.9315.

ICE arabica coffee speculators raised their net long position by 4,073 contracts to 29,253 in the week to Jan. 16.

COCOA: March London cocoa fell 0.8% to 3,744 pounds a ton, after setting a record high of 3,798 pounds on Friday.

London cocoa speculators raised their net long position by 6,053 lots to 65,467 lots as of Jan. 16.

Data last week also showed the cocoa grind, a measure of demand, in North American, Europe, and Asia fell in the fourth quarter. However, the falls were less pronounced than expected, dealers said, given the extent of the price rise.

BMI, a unit of Fitch Solutions, said it expects demand to continue to fall in the 2023/2024 season, significantly enough to temper the rise in cocoa prices.

March New York cocoa settled down $18 or 0.4% to $4,565 a ton, having earlier matched Friday’s 46-year high of $4,607.

SUGAR: March raw sugar settled down 0.07 cent or 0.3% at 23.50 cents per lb, after hitting a five-week high on Friday.

Dealers said the weather in Brazil sugar areas is being watched closely, with rains so far below the average.

March white sugar was little changed at $663 a ton. —