SOFTS – Coffee prices jump nearly 7% in New York after inventory reduction

Arabica coffee prices at New York’s Intercontinental Exchange (ICE) rose nearly 7% on Thursday following a sharp reduction in the quantity of bags available at ICE-certified warehouses, while Raw sugar prices fell by more than 3%.

CAFÉ

* March Arabica coffee was up 12 cents, or 6.9 percent, at $1.847 a pound, after touching a five-month high of $1.8590.

* Traders said the sharp rise in prices was due to reduced stocks of ICE-certified Arabica coffee, which reached a 24-year low.

*The balance of certified stocks is so tight. The action really looks like a forced sell,” one U.S. broker said, referring to investors trying to get an edge on short sellers.

* After falling by nearly 34,000 bags on Wednesday, certified stocks were reduced by more than 35,000 bags on Thursday after markets closed. Stocks are now at 224,066 bags, the lowest level since February 1999.

* January robusta coffee rose 3.5% to $2,611 per metric ton.

* Fresh coffee beans from Vietnam’s 2023/24 harvest have not yet been delivered in bulk as rains in major growing areas disrupted bean processing, traders said.

SUCRE

* March raw sugar fell 0.82 cents, or 3.1%, to 26.04 cents per pound, after hitting a seven-week low of 25.90 cents.

* Traders said the strong pace of production in Brazil was keeping the market on the defensive.

*A correction was expected due to an ever-larger harvest in Brazil,” said analyst Claudiu Covrig, adding that the funds’ large long position was also an indication of profit-taking at some point.

* When you can’t break the market up, you break it down! Then, if funds see those lower floors, that triggers profit-taking and massive liquidations,” he said.

* March white sugar fell $17.60, or 2.4%, to $717.10 a tonne.

COCOA

* March cocoa in London lost 6 pounds, or 0.2%, to 3,558 pounds per metric ton, after hitting a record 3,572 pounds.

* Prices have increased by around 90% this year, with unfavorable weather conditions in West Africa reducing production and expected to lead to a third consecutive global deficit in the current 2023/24 season (October/September).

* March cocoa in New York was little changed at $4,277 per tonne (reporting by Nigel Hunt and Marcelo Teixeira, editing by David Goodman, Kirsten Donovan and Sandra Maler).