Coffee Climbs for a Third Day on Rainfall in Indonesia, Vietnam

Jan. 12 (Bloomberg) –Coffee rose for a third day in London on concerns that excess rains in Indonesia and Vietnam may exacerbate an already tight global supply and demand balance.
“The weather in Vietnam and Indonesia is supporting” prices, said Keith Flury, an analyst at Rabobank International in London, adding that there has been “too much rain” in the region. Vietnam is the largest producer of robusta beans.

Robusta for March delivery climbed $63, or 3 percent, to $2,173 a metric ton on NYSE Liffe in London at 10:11 a.m. Arabica coffee for March delivery was up 3.5 cents, or 1.5 percent, to $2.3820 a pound on ICE Futures U.S. in New York.

“There is a low level of stocks,” said Flury. “There isn’t a whole lot of buffer that could keep prices stable.”

White, or refined, sugar for March delivery was little changed at $807 a ton on NYSE Liffe. Raw sugar for March delivery was little changed at 32.77 cents a pound on ICE Futures.
Cocoa for March delivery rose 13 pounds, or 0.7 percent, to 1,983 pounds a ton in London. The chocolate ingredient for March delivery added $25, 0.9 percent, to $2,959 a ton in New York.