Raw sugar and coffee Arabica prices on multi-year highs

Frankfurt (aktiencheck.de AG) - The prices of raw sugar and coffee Arabica in November could rise to multi-year highs, the analysts at Commerzbank Corporates.

Inflationary were the announcement of a further quantitative easing of U.S. monetary policy, but also offer some disappointing news from some producing countries have been. This season was a balanced relationship between supply and demand expected, which should moderately dampen future price development. With low stocks should stabilize the prices of sugar and coffee at a relatively high level. The cocoa price should evolve in the face of an expected market surplus remains below par.



The analysts expect that the uncertainty and fear of supply shortages in the sugar price would hold until the spring at a high level around 30 U.S. cents. With the new crop in Brazil, the situation should relax and give in to the price of sugar by the end of 2011 to 25 U.S. cents. This is particularly true when the concrete was developed by ISO in a first forecast for next year's harvest expected surplus of 2.5 million tonnes. The development of this year show that the price decline could be much stronger if the financial investors would withdraw their funds.

For coffee, the supply situation will remain tense. This should help ensure that the prices of Arabica and Robusta in the coming months would remain well supported. Here, the analysts would expect because of harvesting problems in Brazil believe that the price of Arabica develop relatively better. The analysts expect for 2011 with an average price of 215 cents per pound of coffee beans for Arabica and Robusta $ 1,950 per tonne.

The International Cocoa Organization (ICCO) has yet their appreciation for the balance of the market correction began in October year 2010/11 up and expects a supply surplus of 100 thousand tons. The expected surplus speak for moderate falling cocoa prices in 2011. Analysts at Commerzbank Corporates & Markets expect an average price of 2,650 USD per tonne. In the case of short coverings by financial investors, it could come in the meantime always raise prices. (25.11.2010/ac/a/m)