SOFTS-Arabica coffee surges on weather woes, sugar and cocoa also up
Adds comments on coffee, updates prices
NEW YORK, June 16 (Reuters) - Arabica coffee futures rose sharply on Tuesday on ICE with investors covering short positions amid concerns about the harvest in Brazil, the coming El Nino and the level of certified stocks. Sugar and cocoa also rose.
COFFEE
* Arabica coffee KCc2 settled up 13.6 cents, or 5.2%, at $2.728 per lb.
* StoneX coffee analyst Leonardo Rossetti said speculators that had moved from long to a net short position in the market last week might have covered some of those shorts, amid concerns about delayed harvest in Brazil.
* Several days of rain soaked harvested coffee that was being left to dry at farmyards in main producing areas in Brazil and halted harvest field work in the world's top producer and exporter.
* "There is good demand, rising differentials in Colombia, certified stocks falling, and a cold spell coming to Brazil in two weeks," said a U.S.-based trader, citing some other factors for the market rise.
* Robusta coffee LRCc2 rose 2% to $3,598 a metric ton.
SUGAR
* Raw sugar SBc1 settled up 0.14 cent, or 1%, at 13.82 cents per lb, having earlier hit a near two-month low of 13.56 cents.
* Dealers said a decline in crude oil prices had initially exerted downward pressure on the sugar market.
* They noted, however, the outlook for the 2026/27 season was looking constructive with an El Nino weather event likely to curb production.
* "Reflecting increasing El Niño risks, multiple private forecasts for the global sugar balance in 2026/27 have tightened in recent weeks," Rabobank said in a note.
* Australia's weather bureau warned on Tuesday that an El Nino weather pattern has formed in the tropical Pacific and could intensify in the second half of 2026 to become one of the strongest in seven decades.
* White sugar LSUc1 gained 1.7% to $449.90 a ton.
COCOA
* London cocoa LCCc2 settled up £189, or 6.4%, to £3,157 per ton.
* The market has been supported by indications that 2026/27 main crops in West Africa may be significantly below this season with El Nino weather conditions adding to concerns about crop prospects in the region.
* New York cocoa CCc2 gained 6.6% to $4,234 a ton.
