Coffee futures market hit a two-year high

ICE raw sugar fell on March 11, coffee futures market hit a two-year high

ICE Arabica futures extended their strong rally Tuesday, hitting a two-year high as parts of Brazil's coffee belt did not receive enough rain and Robusta rose to a one-year high.

Cocoa futures rose to two-and-a-half-year highs in New York and London, driven by technical buying. Sugar is falling.

ICE-May Arabica coffee closed up 2.25 cents, or 1.1 percent, at $2.0565 a pound after hitting a two-year high of $2.0890 in intraday trading.

While parts of Brazil's coffee belt received much-needed rainfall, other areas did not receive rain, and below-normal rainfall is still expected.

Brazil's Robusta coffee bean growing area was unaffected by dry weather.

London International Financial Futures and Options Exchange (LIFFE)-May Robusta coffee closed up $33, or 1.5 percent, at $2,180 a tonne after hitting a one-year intraday high of $2,195.

Cocoa futures rose to multi-year highs, helped by an expected global shortage in 2013/14 and a stop-loss buy above $3,000 on the ICE-May contract.

ICE-May cocoa futures closed up $22, or 0.7 percent, at $3,006 a tonne after hitting an intraday high of $3,027 since September 2011. Liffe-May cocoa futures closed up 18 pounds, or 1 percent, at 1,878 pounds a tonne.

ICE-May raw sugar closed down 0.19 cents, or 1 percent, at 18.03 cents. Liffe-May white sugar closed down $7.10, or 1.5 percent, at $471.00 a tonne.

China Coffee Trading Network: www.gafei.com