Robusta hits 21-month high, sugar rises

Robusta coffee hit a 21-month high in early trading Monday before trimming gains, while arabica coffee eased from a 12-1/2 year high, with fund and speculative buying supporting both markets. Arabica coffee hit a high of $1.7935 a lb on Friday as the Reuters-Jefferies CRB index, a global commodities benchmark, reached a 12-week peak on a weaker dollar and better investment sentiment. Robusta was trading at $1,802 a tonne on Liffe at 0935 GMT after earlier reaching as high as $1,833. New York coffee is expected to rally into a range between $1.8180 and $1.8280 a lb as per its wave pattern and a "double bottom" pattern, Reuters' analyst Wang Tao said. Cocoa prices traded in a new lower range since sharp losses last month saw the London market fall back from a 32-year high of £2,465 ($3,850) a tonne on July 18. New York cocoa may rise towards $3,150 per tonne, but the rebound in prices should end around this level as this could be the highest point to be touched by the wave (2), Reuters' analyst Tao said.