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New York Futures: Arabica coffee futures rise on expectations of global supply shortages

Published: 2024-11-03 Author: World Gafei
Last Updated: 2024/11/03, New YORK / London (Reuters)-ICE Arabica coffee futures rose on Friday as an industry body expected global supply shortages due to a drought in Brazil and a stronger real. ICE raw sugar futures closed flat, while cocoa futures fell, hurt by abundant supply of new works in West Africa. ICE- March Arabica Coffee Futures (KCc2) closed up $1.85

New YORK / London (Reuters)-ICE Arabica coffee futures rose on Friday as an industry body expected global supply shortages due to a drought in Brazil and a stronger real.

ICE raw sugar futures closed flat, while cocoa futures fell, hurt by abundant supply of new works in West Africa.

ICE- March Arabica coffee futures (KCc2) closed up 1.85 cents, or nearly 1%, at $1.907 a pound. The contract fell nearly 3 per cent this week.

Volcafe, the coffee arm of Switzerland's ED&F Man, kept Brazil's Arabica coffee production forecast unchanged at 47 million bales in 2014 / 15, Reuters reported. The company said the global supply gap would widen to 10 million packets this year.

Rodrigo Costa, head of coffee at Newedge USA, said the positive forecasts prompted traders to cover short positions. Traders increased their short positions this week.

LIFFE- January Robusta Coffee (LRCc2) closed steady at $2078 a tonne.

The strength of the real (BRBY) helps support the coffee rally.

Raw sugar futures were basically flat, and the drag caused by weak demand was offset by support from the strength of the real.

ICE- March Raw Sugar Futures (SBc1) closed down 0.01 cents, or 0.06%, at 16.09 cents per pound.

LIFFE- March sugar futures (LSUH5) closed down $1, or 0.2%, at $420.70 a tonne.

ICE- March Cocoa Futures (CCH5) closed down $7, or 0.2%, at $2822 a tonne. LIFFE- March Cocoa Futures (LCCc2) fell 1 pound, or 0.05%, to close at 1873 a tonne. (end)

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