Raw sugar futures edged up on Monday with the upside capped by rapid cane harvesting in top grower Brazil, while coffee steadied before new Brazil 2015/16 output data due on Tuesday.
Cocoa futures were little changed, underpinned by tight production in No. 2 grower Ghana.
Raw sugar futures firmed in light volumes, capped by abundant supplies as cane harvesting in Brazil approached its peak.
Hedge funds started pulling out of their bearish coffee bets just in time to escape being squeezed by the biggest rally in 11 weeks.
Investors who were the most negative on prices since December 2013, retreated from their net-short position before futures posted seven straight gains through June 4. Signs that supplies won’t be as plentiful as some analysts had expected sparked a 9 percent rebound from this year’s low in late May.
While rains in the first quarter spurred speculation that Brazil’s trees would recover from last year’s drought, farmers found smaller-than-expected beans when the harvest started in May. Analysts have started cutting their estimates for output in the country, the biggest grower and exporter, exchange-monitored stockpiles are near the lowest level since September 2012, and exports are declining from Costa Rica and Peru.
Coffee and chocolate sales have trebled in the Arab world in the past decade, with consumption having increased by 100% in Saudi Arabia alone in the past three years. According to economist Hajar Al-Fadl, Saudis now spend more than five billion riyals on coffee each year.
“The Kingdom has achieved a huge growth in coffee sales with 25% annual growth each year from 2011 to 2014, making it the fastest-growing coffee market in the world,” Al-Fadl said.
The figures were revealed ahead of the 2nd International Coffee and Chocolate Exhibition, which takes place at the Riyadh International Convention and Exhibition Center from 26-28 November, 2015.
Ethiopian Commodity Exchange (ECX) is to compact the current ten levels of coffee quality grading to five levels to simplify coffee quality identification, Capital reported.
ECX is expected to endorse the draft for the establishment of new grading system in a week.
The Ethiopian coffee quality grading system is based on the combined result of raw (physical) and cup (liquor) taste values. ECX, Ethiopia’s representative for the American Coffee Quality Institute (CQI), adopted the coffee grading system from CQI’s standards.
Hoon Thing Leong leads the way through the crowded Bishan coffee shop, squeezing his burly frame past the cramped drinks station, and stopping at the door to his office.
Before he opens it, he asks what I would like to drink, then shouts out to a woman stirring a cup of Milo vigorously: “One kopi peng siew dai, and one teh si for me.”
That, in the parlance unique to coffee shops all over this island, means ice coffee easy on the sugar and hot tea with evaporated milk.