Coffee Futures Steady; Cocoa Higher
Coffee futures have remained steady despite a report from the International Coffee Organization that projects a global surplus in the coffee market instead of a deficit.
Arabica coffee for December rose 0.8% to end at $1.2575 a pound on the ICE Futures U.S. exchange.
The International Coffee Organization raised its figure for global coffee production in the recently ended 2016/2017 season by 3.7 million bags to 157.4 million bags, a record high and 3.4% higher than the previous season. The figure means that the market ended the year with a surplus of 2.4 million bags.
"The ICO is already confirming a well-supplied market at the start of the season, which promises little upside potential for prices," Commerzbank said in a note.
In other markets, cocoa for December extended gains into a fourth session to close at it's highest levels since Jan. 18
Cocoa rose 2.5% to end at $2,216 a ton on the ICE Futures U.S. exchange. Helping gains, cocoa giant Barry Callebaut said in an earnings call that margins for grinding beans were near a six-year high, aiding trader sentiment that demand for the bean will be higher.
Raw sugar for March rose 0.8% to end at 14.84 cents a pound, frozen concentrated orange uice for January was up 0.4% to close at $1.6075 a pound and December cotton closed up 0.8% at 68.63 cents a pound.
Write to Julie Wernau at julie.wernau@wsj.com
(END) Dow Jones Newswires
November 08, 2017 16:49 ET (21:49 GMT)