LONDON: Arabica coffee futures on ICE rose on Wednesday, bucking a downward trend in commodities and broader financial markets as ICE exchange stocks continued to drift to 22-year lows .
Arabica coffee for September rose 0.6% to $2.3375 a pound by 12:24 GMT.
ICE-certified stocks fell to 981,901 bags on Tuesday, nearing their lowest level in 22 years, as the industry continues to opt for cheaper coffee than similar products in the spot market.
Traders said further declines in ICE coffee stocks are to be expected until October at the earliest, when Honduras’ new crop will be harvested.
In the shorter term, they said coffee is growing in popularity as financial investors start shifting funds from stocks and cryptocurrencies into commodities because of their perceived store of value.
September robusta coffee slid 0.1% to $2,099 a tonne.
July raw sugar fell 1.2% to 18.44 cents a pound.
Dealers said sugar is finding demand around the 18.50 level, but added that it remains largely at the mercy of sentiment in the broader financial markets, which is currently negative.
Global stock markets and oil prices skidded on Wednesday as the lingering throbbing over rising interest rates and recessions hit again. The dollar index rose during this time. A shortage of sugar in the Philippines has worsened as local production missed forecasts and due to a delay in planned imports of up to 200,000 tonnes of refined sweetener.
August white sugar fell 0.7% to $555.80 a tonne.
New York Cocoa in September fell 0.8% to $2,449 a tonne.
London Cocoa in September fell 0.5% to 1,756 pounds a tonne.