Arabica prices rally, head back towards 3-month peak
LONDON, Feb 2 (Reuters) -Arabica futures on ICE rallied on Thursday, heading back to a recent three-month peak on signs that available supplies in Brazil are shrinking fast.
* March arabica coffee KCc1 rose 2.2% to $1.7975 per lb, after touching $1.8420 on Wednesday, its highest since late October.
* Dealers said funds are covering their short positions as physical premiums in top producer Brazil have shot up to their highest in about a decade.
* Also, top producer Brazil's January green coffee exports fell 5% from an year earlier to 169,553 tonnes.
* Rabobank on Wednesday lowered its forecast for the 2023/24 global coffee surplus to 1.6 million 60-kg bags from a previous estimate of 4 million.
* March robusta coffee LRCc1 rose 0.7% to $2,068 a tonne.
* Trading in top robusta producer Vietnam has resumed after a week-long Lunar New Year break but farmers were reluctant to sell due to steep discounts being offered by buyers.
* March raw sugar SBc1 rose 0.7% to 21.52 cents per lb after earlier climbing on Wednesday to a six-year peak of 21.86 cents.
* Logistical bottlenecks in Brazil are on the cards this year as the world's top sugar exporter is harvesting a bumper grain crop just as sugar production is also expected to rise, sugar trader Alvean's chief executive said.
* Mills in India, the world's second largest sugar exporter, have produced 21.6 million tonnes of the sweetener since the current season began on Oct. 1, up 6% year on year.
* Still dealers said the market overall is lowering its sugar output forecasts for India this year, boosting prices, which have at the same time become technically overbought.
* March white sugar LSUc1 rose 0.3% to $564.60 a tonne.
* March New York cocoa CCc1 fell 0.3% to $2,585 a tonne.
* Cocoa arrivals at ports in top grower have slumped since the beginning of the year as erratic and insufficient rainfall hit crop output, exporters and farmers said.
* March London cocoa LCCc1 slipped 0.4% to 2,017 pounds per tonne.
Reporting by Maytaal Angel; Editing by Arun Koyyur
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