LONDON: London cocoa futures on ICE hit their lowest in 2-1/2 years on Thursday as concern about unsold stocks of cocoa in both Ivory Coast and Ghana continued to weigh on prices while coffee prices also fell.
COCOA
London cocoa fell 3.8percent to 2,221 pounds per metric ton at 1220 GMT after setting a 2-1/2 year low of 2,218 pounds. Dealers said producer selling, particularly from Ivory Coast, had contributed to Wednesday’s sharp fall in prices. They noted weak global demand has led to a build-up in stocks in West Africa and helped to drive down prices.
Ghana has already cut the price paid to farmers in a bid to boost sales, while Ivory Coast is considering following suit. New York cocoa lost 4.35percent to USD3,170 a ton, having hit a 2-1/2 year low of USD3,163.
COFFEE
Arabica coffee fell 0.9percent to USD2.8260 per lb with the market heading back down towards a 6-1/2 month low of USD2.8015 set on Tuesday. Dealers said abundant rainfall had encouraged the growth of coffee cherries in Brazil and the outlook for this year’s harvest was favourable. The sharp drop in prices has, however, brought selling by farmers in Brazil to a virtual standstill. Robusta coffee lost 1.7 percent to USD3,621 a ton.
SUGAR
Raw sugar fell 0.6percent to 14.08 cents per lb. The market slumped to a five-year low of 13.67 cents last week. Dealers said supplies remained ample with a global surplus widely forecast for the current 2025/26 season. White sugar lost 0.5percent to USD405.70 a ton.
Comments
Comments are closed for this article.