Arabica coffee hits two-week high, cocoa climbs

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LONDON — Arabica coffee futures climbed to a two-week peak on Wednesday, extending the market’s rebound from a recent 1-1/2 year low, while cocoa prices also rose.

COFFEE

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* March arabica coffee rose 0.4% to $1.6055 per lb by 1146 GMT after setting a two-week peak of $1.6185.

* Dealers noted ICE certified stocks had stabilized after their recent climb although there was still a significant volume of coffee to be graded.

* ICE certified coffee stocks stood at 858,647 bags as of Jan. 24, marginally below a six-month high of 859,564 bags set on Jan. 19. There were 125,209 bags pending grading.

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* March robusta coffee rose 0.4% to $1,951 a tonne.

COCOA

* March New York cocoa rose 0.6% to $2,601 a tonne.

* Dealers said ongoing crop problem in number two producer Ghana linked to swollen shoot virus outbreaks remained a concern although the outlook remained generally favorable in other parts of West Africa.

* “This (a favorable outlook in Ivory Coast, Cameroon and Nigeria) has raised the prospect of a stronger than expected crop and could cap further upside for cocoa prices,” fund manager Wisdom Tree said in a report on Wednesday.

* There have also been concerns about weakening demand following recent year-on-year declines in fourth quarter grinds in Europe, North America and Asia.

* March London cocoa rose 0.65% to 2,007 pounds a tonne.

SUGAR

* March raw sugar fell 0.5% at 19.78 cents per lb, erasing some of the prior session’s gains.

* Dealers said the market had derived support from news that Petrobras was raising gasoline prices in Brazil, a move which could encourage mills to use cane to make biofuel ethanol rather than sugar.

* March white sugar fell 0.6% to $544.60 a tonne. (Reporting by Nigel Hunt; Editing by Alexander Smith)