London, July 15 (Reuters) – ICE’s Arabica coffee futures rose on Friday after hitting a 9-month low in the previous session, but downward pressure persisted with global growth concerns and improved production prospects in Brazil, the largest producer in Brazil.
Meanwhile, cocoa in New York rose from a two-year low.
* Arabica coffee September KCc2 It rose 0.5% to $1.9630 a pound at 1039 GMThaving closed down 5.8% on Thursday after hitting a 9-month low of $1.9495.
– Traders indicated fading fears that frost could hit Brazilian coffee regions and harm next season’s crop, along with better than expected production this season and increased exports. [nL8N2YV4R2]
* In the broader markets, the US dollar, which many consider a safe haven, settled near its highest levels in two decades amid continued global growth and inflation fears. A strong dollar makes dollar-priced commodities like coffee more expensive for investors outside the United States. FRX/
* Robusta September coffee LRCc2 It fell 0.7% to $1,917 tons, after hitting a nearly one-year low of $1,915.
* September New York Cocoa CCc2 It rose 1% to $2,311 tons, after hitting a two-year low on Thursday.
– Traders said a strong dollar was hurting cocoa, and they also pointed to concerns about deteriorating demand for the chocolate component.
* They added that funds likely built record net short positions this week.
* Cocoa London September LCCC2 It rose 0.7% to 1748 Pounds per ton after hitting its lowest level since early March on Thursday.
*Raw October sugar SBc1 It was fixed at 18.97 Cents per pound.
* Traders said in the near term The scarcity of white sugar, partly linked to India’s export restrictions, limits losses in raw materials.
New legislation passed by Brazil’s Congress late on Wednesday reinstated a tax advantage for biofuels over fossil fuels — a move that would benefit ethanol and sugar in the long run.
*August white sugar LSUc1which expires later in the session, fell 0.6% to $591.90 on him.
(Reporting by Metal Angel; Editing by Shinjini Ganguly)
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