Updates with comments and closing prices

NEW YORK/LONDON, May 17 (Reuters)Arabica coffee futures on ICE hit a 3-1/2-week high on Tuesday after surging 5% in the previous session as investors remained jittery about frost risk this week in top producer Brazil.

Raw sugar hit its highest in a month.


* July arabica coffee KCc2 settled up 2.4 cents, or 1.1%, at $2.272 per lb, after hitting a more than three-week high of $2.2935 earlier in the session.

* Farm areas in Brazil’s center-south may be hit by light frosts in the coming days, raising concerns about corn, coffee and sugarcane crops.

* Although many forecasters say it is too early in the season for frost damage to occur, dealers said the market fears frost risk this season is not fully priced in at present.

* “The consequences of frost are massive. (Even) a temperature of +2C can damage the coffee plant if the cold persists,” said a dealer.

* The coldest temperatures are expected in the early hours of Wednesday in Brazil.

* July robusta coffee LRCc2 rose $17, or 0.8%, to $2,104 a tonne.


* July raw sugar SBc1 rose 0.32 cent, or 1.6%, to 20 cents per lb, having hit a month-high at 20.24 cents.

* Dealers said that while sugar could pull back this week if the weather in Brazil moderates, it is seeing upward pressure from rising prices for energy, grains and fertiliser.

* Higher energy and grains prices tend to lift the price of ethanol. This can tempt cane mills in top sugar producer Brazil to produce less of the sweetener and more of the biofuel.

* Traders told Reuters at Sugar Week in New York last week that Brazilian cane mills are cancelling some sugar export contracts and diverting production to ethanol.

* August white sugar LSUc1 rose $5.60, or 1.0%, to $554.80 a tonne.


* July New York cocoa CCc1 settled up $8, or 0.3%, at $2,513 a tonne.

* Cocoa arrivals at ports in top grower Ivory Coast reached 1.841 million tonnes between Oct. 1 and May 15, exporters estimated, down 3.9% from the same period last season.

* July London cocoa LCCc2 fell 23 pounds, or 1.3%, to 1,776 pounds per tonne‚Äč.

(Reporting by Marcelo Teixeira and Maytaal Angel Editing by Mark Potter, Vinay Dwivedi and Devika Syamnath)

((marcelo.teixeira@tr.com; +1 332 220 8062; Reuters Messaging: marcelo.teixeira.thomsonreuters.com@reuters.net – https://twitter.com/tx_marcelo))

Source: Nasdaq


Please enter your comment!
Please enter your name here