Robusta coffee rose for a fourth day in London, extending the biggest weekly gain in almost 20 months, as roasters tap inventories before the start of the crop in leading grower Vietnam. Cocoa advanced.
Robusta rallied 6.1 percent last week, the most since the week ended Feb. 10, 2012, data compiled by Bloomberg showed. Stockpiles with a valid grading certificate in warehouses monitored by the NYSE Liffe exchange fell 19 percent from two weeks earlier to 60,380 metric tons as of Sept. 30, bourse data showed. Prices reached the lowest level since 2010 last month.
“When the price fell in recent months, a number of suppliers, especially in Vietnam, the main producing country, opted to hold back some of last season’s crop,” Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt, said in a report e-mailed today. “Consequently, processors have had to turn increasingly to exchange reserves.”
Robusta coffee for delivery in November climbed 0.8 percent to $1,722 a ton by 10:48 a.m. on NYSE Liffe in London. Arabica coffee for delivery in December was unchanged at $1.144 a pound on ICE Futures U.S. in New York.
Harvesting of Vietnam’s 2013-14 crop will start at about the end of the month, with the first shipment only possible in mid-November, Nguyen Chi Cuong, chief executive officer at trading company NC Group Ltd., with offices in Ho Chi Minh City, said by e-mail Oct. 1. Exchange-monitored stocks will reach 52,000 tons by year end, the lowest since May 2000, the average of 10 trader estimates compiled by Bloomberg in August showed.
Robusta prices are likely to “ease back” before a record crop in Vietnam, Kona Haque, a London-based analyst at Macquarie Group Ltd., said in a report e-mailed today. The nation will gather 29 million bags in the 2013-14 season and the global market will move into a surplus of 2.4 million bags, compared with a 900,000-bag shortage in 2012-13, she said.
Cocoa for delivery in December gained 0.5 percent to 1,703 pounds ($2,736) a ton on NYSE Liffe. Cocoa for the same delivery month advanced 0.6 percent to $2,627 a ton on ICE.
Refined, or white, sugar for delivery in December added 0.4 percent to $494 a ton in London. Raw sugar for delivery in March rose 0.3 percent to 18.53 cents a pound in New York.
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