NEW YORK/LONDON: Arabica coffee futures on ICE closed lower on Friday, accumulating losses of 2.7% for the week, weighed down partly by rising exchange stocks, while raw sugar prices were also lower.
COFFEE: March arabica coffee settled down 0.55 cents, or 0.3%, at $1.5815 per lb. The contract lost 2.7% in the week, its second consecutive week of losses.
Dealers said the market was back on the defensive after a short-lived rally linked partly to a deteriorating outlook for next year’s crop in Brazil.
“After temporarily rebounding due to a worsening supply outlook in top producer Brazil and Colombia, arabica coffee prices have begun to ease, triggered by a sharp rebound in ICE arabica coffee inventories,” Fitch Solutions said in a note.
ICE certified coffee stocks rose to 681,698 bags on Dec. 9, well above a 23-year low of 382,695 bags set on Nov. 3. There were 384,310 bags pending grading.
January robusta coffee fell $34, or 1.8%, at $1,884 a tonne.
The global coffee supply balance will shift from a deficit of 2.17 million bags in 2022/23 to a surplus of 3.74 million bags in 2023/24 as Brazil’s output partly recovers, according to a report.
SUGAR: March raw sugar ?settled down 0.08 cents, or 0.4%, at 19.60 cents per lb. The contract, however, gained 0.6% this week, its second consecutive week of gains.
The market has been supported by rains in Brazil which is likely to result in millions of tonnes of cane being left in the fields to be harvested next year.
Brazil’s sugar and ethanol industry group Unica will release on Monday a production report regarding the Centre-South region covering the second half of November.
March white sugar rose $0.80, or 0.1%, at $541.40 a tonne.
COCOA: March New York cocoa settled down $38, or 1.5%, to $2,504 a tonne. The contract lost 1% in the week.
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