Coffee rises on Brazil supply concerns, sugar rebounds

(Adds comments on sugar, updates prices to settlement)

NEW YORK, Jan 22 (Reuters) – Coffee rose by more than 4% on Wednesday, supported by a lower production outlook in Brazil, the world’s largest producer, while white sugar rebounded from multi-year lows hit in the previous session.

* Robusta coffee settled up $189, or 3.6%, at $5,452 a metric ton, a price last seen on Dec. 10. The contract gained 11% in four sessions.

* Arabica coffee rose 4.3% to $3.4185 per lb, after hitting a one-month high at $3.4295 per lb.

* Doubts over supply from top producer Brazil were underpinning prices, amid a reduction in the certified arabica stocks at ICE.

* “There is a bit of nervousness in Europe due to the lack of availability of spot coffees, particularly Brazilian”, said Tomas Araujo, a broker at StoneX. “And the cert stock drawdown makes people nervous as we approach expiration of March 2025”.

* Certified stocks fell to 956,209 bags on Wednesday with not much pending grading.

* White sugar settled up $11.20, or 2.4%, at $477.60 a ton after falling to its lowest since August 2021 on Tuesday, pressured by news of India’s return to the export trade market.

* Raw sugar rose 2.1% to 18.16 cents per lb, after a five-month low of 17.57 cents in the previous session.

* Dealers said the market was ripe for a correction after the recent losses. They also noted the recovery of the Brazilian currency, which usually leads producers there to pause selling.

* New York cocoa futures settled up $116, or 1%, to $11,675 a ton.

* Around 100,000 fewer metric tons of cocoa are expected to arrive at Ivory Coast ports between February and March versus last season, a pod counter and a director at an exporting firm told Reuters, as the sector frets about poor rains and high temperatures.

* Chocolate maker and cocoa processor Barry Callebaut BARN.S reported a lower sales volume than expected for its first quarter on Wednesday, hit by delayed orders as its clients renegotiate product prices with retailers amid record high cocoa costs.

* London cocoa rose 1.2% to 9,347 pounds per ton.

(Reporting by Sybille de La Hamaide and Marcelo Teixeira; Editing by Emelia Sithole-Matarise, Barbara Lewis and Alan Barona)