Robusta coffee hits over 16-year peak; arabica up too

LONDON — Robusta coffee futures on ICE hit their highest in more than 16 years for a fifth straight day on Wednesday amid worries over Vietnam supplies, while arabica hit its highest in more than 1-1/2 years.

Cocoa resumed its blistering rally, but had yet to scale new record peaks after Tuesday’s slide.

COFFEE: July robusta coffee rose 2.5% to $4,075 a metric ton at 1240 GMT, after peaking at $4,083, the highest level since the current form of the contract started trading in 2008.

Dealers described the market in top producer Vietnam as “inactive,” with farmers holding onto stock despite the record highs, as they expect even higher prices.

There are also concerns over Vietnam’s weather, they said, as April rainfall has thus far closely tracked 2016, when dry conditions resulted in a production drop of 8.6%.

July arabica coffee rose 2.4% to $2.3385 per pound (lb), having hit $2.3445, its highest since early September 2022.

“Arabica may be experiencing a spillover effect from the recent robusta rally and the ongoing Red Sea crisis,” said Rabobank in a note.

Arabica and robusta are fungible to an extent, as coffee is traditionally a blend.

COCOA: July London cocoa rose 2.5% to £8,556 per ton after hitting a record £9,025 on Tuesday before closing down nearly 6%.

First-quarter cocoa grind data for Europe and North America is due on Thursday.

Dealers said any fall would mainly be seen as a reflection of a shortage of beans rather than an indication that high prices are beginning to curb demand.

Nonetheless, they expect declines of between 3% and 6% for

Europe, 8% for north America, and 8% for Asia.

July New York cocoa rose 3.2% to $10,133 a ton, having slid 7% at the close on Tuesday.

SUGAR: May raw sugar fell 1.8% to 19.28 cents per lb, after touching a 16-month low of 19.27 cents.

Stronger-than-expected sugar production in India and Thailand have put the market on the defensive.

Recent rain in Brazil has also improved the outlook for cane production in the 2024/2025 season.

August white sugar fell 2.3% to $557.10 a ton. —