LONDON, Sept 24 (Reuters): Coffee futures on ICE headed back towards multi-year highs on Tuesday as worries over the crop in top producer Brazil persisted, compounded by fears there will not be enough rains in the country in the weeks ahead.
Raw sugar futures also gained, heading back near seven-month highs.
COFFEE
December arabica coffee rose 2.1 per cent to $2.6680 per lb at 1301 GMT, just shy of a 13-year high set a week ago.
Dealers said rains this past weekend in Brazil's coffee growing regions were likely enough to stimulate the first crop flowering, but follow-up rains will be needed to help fix the flowers into cherries.
"This is where things get tricky," said one dealer, noting the 11- to 15-day forecast has trended drier.
Capping gains in coffee prices though were reports that the EU Deforestation Regulation (EUDR) banning the import of commodities linked to deforestation could be delayed in the next few days, dealers said.
The regulation is due to come into effect at the end of December, and has been boosting coffee imports into the bloc for much of this year.
November robusta coffee rose 0.8 per cent to $5,318 a metric ton, having hit its highest in nearly half a decade last week.
SUGAR
October raw sugar rose 2 per cent to 22.99 cents per lb, having hit a seven-month high of 23.17 cents on Monday.
Dealers noted reduced sugar output forecasts for the crop in top producer Brazil both this year and next due to the drought and related fires. December white sugar rose 1.7 per cent to $594.30 a ton.
COCOA
December New York cocoa fell 0.8 per cent to $7,723 a ton.
March London cocoa fell 1 per cent to 4,514 pounds per ton.
