Robusta coffee hits over 16-year peak, arabica at more than 1-1/2 year high
LONDON, April 17 (Reuters) -Robusta coffee futures on ICE hit their highest in more than 16 years for a fifth straight day on Wednesday amid worries over Vietnam supplies, while arabica hit its highest in more than 1-1/2 years.
Cocoa resumed its blistering rally, but had yet to scale new record peaks after Tuesday's slide.
COFFEE
* July robusta coffee LRCc2 rose 2.5% to $4,075 a metric ton at 1240 GMT, after peaking at $4,083, the highest level since the current form of the contract started trading in 2008.
* Dealers described the market in top producer Vietnam as 'inactive', with farmers holding onto stock despite the record highs, as they expect even higher prices.
* There are also concerns over Vietnam's weather, they said, as April rainfall has thus far closely tracked 2016, when dry conditions resulted in a production drop of 8.6%.
* July arabica coffee KCc2 rose 2.4% to $2.3385 per lb, having hit $2.3445, its highest since early September 2022.
* "Arabica may be experiencing a spillover effect from the recent robusta rally and the ongoing Red Sea crisis," said Rabobank in a note.
* Arabica and robusta are fungible to an extent, as coffee is traditionally a blend.
COCOA
* July London cocoa LCCc2 rose 2.5% to 8,556 pounds per ton after hitting a record 9,025 pounds on Tuesday before closing down nearly 6%.
* First-quarter cocoa grind data for Europe and North America is due on Thursday.
* Dealers said any fall would mainly be seen as a reflection of a shortage of beans rather than an indication that high prices are beginning to curb demand.
* Nonetheless, they expect declines of between 3 and 6% for Europe, 8% for north America and 8% for Asia.
* July New York cocoa CCc2 rose 3.2% to $10,133 a ton, having slid 7% at the close on Tuesday.
SUGAR
* May raw sugar SBc1 fell 1.8% to 19.28 cents per lb, after touching a 16-month low of 19.27 cents.
* Stronger-than-expected sugar production in India and Thailand have put the market on the defensive.
* Recent rain in Brazil has also improved the outlook for cane production in the 2024/25 season.
* August white sugar LSUc1 fell 2.3% to $557.10 a ton.
Reporting by Maytaal Angel
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