LONDON, Feb 8 (Reuters) – Arabica coffee futures on ICE rose sharply on Tuesday, boosted by a further decline in exchange stocks, while raw sugar was dragged down by a firmer dollar and weaker crude oil prices.
* May arabica coffee was up 2.4% at $2.4810 per lb at 1543 GMT as the market continued to derive support from falling exchange stocks.
* Certified ICE arabica stocks stood at 1.08 million bags, as of Feb. 7, down sharply from 1.54 million bags at the end of 2021.
* “The narrative is still declining stocks and doubt about how many years deficit we are confronting. With COVID moving into the endemic phase and palpable demand building, it’s really hard to believe that we have seen the highs,” Cardiff Coffee Trading said in a market update.
* May robusta coffee rose 0.4% to $2,227 a tonne, deriving support from the rally in arabica prices.
* Traders are planning to deliver thousands of tonnes of robusta coffee from Asia to the ICE exchange in Europe for the first time in more than three years – a move likely to take the heat out of benchmark prices that are near 10-year peaks. (…)