Arabica coffee prices fall, focus on Brazil crop outlook
LONDON — Arabica coffee futures on ICE fell on Friday and were on track for a third consecutive weekly decline, as an improving outlook for the crop in top grower Brazil weighed on prices.
* March arabica coffee fell 1.3% to $1.4740 per lb by 1236 GMT. The front month fell to a low of $1.4205 on Wednesday, its weakest level since May 2021.
* The market has fallen by about 12% in 2023.
* Dealers said the outlook for the arabica crop in Brazil had improved after recent rains.
* “An end to Brazil’s dry spell eased concerns over Brazil’s crops,” Fitch Solutions said in a note.
* Dealers noted the recent fall in prices had led to increased demand for exchange stocks.
* ICE certified coffee stocks stood at 845,578 bags, as of Jan. 12, down 4,823 bags from a day earlier.
* March robusta coffee fell 0.2% to $1,878 a tonne.
* March raw sugar fell 0.2% to 19.55 cents per lb, although the market was on track for a weekly gain of about 3% as it continued to derive support from supply tightness which is expected to continue throughout the first quarter.
* Dealers said the market was subdued with some traders squaring positions ahead of the long holiday weekend in the United States.
* March white sugar was up 0.2% at $540.20 a tonne.
* March London cocoa rose 1.1% to 2,074 pounds a tonne.
* March New York cocoa rose 0.8% to $2,660 a tonne. (Reporting by Nigel Hunt; Editing by Subhranshu Sahu)
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