LONDON: Cocoa futures on the ICE exchange hit a one-month high on Wednesday as concerns persist over the threat El Nino-linked weather could pose to next season’s crop. Sugar and coffee also rose.
COCOA
ICE London cocoa was up 2.6percent at £4,522 per metric ton by 1218 GMT after touching a one-month high at £4,612. “The market continues to be influenced by crop forecasts and ongoing El Nino worries,” said broker StoneX.
In addition to reduced forecasts for top growers Ivory Coast and Ghana for the coming 2026/27 season, it said there are also concerns that Ecuador, Peru and southeast Asia could together produce 100,000 tons less cocoa. New York cocoa rose 2.4percent to USD6,064 a ton, after touching a one-month high of USD6,222.
SUGAR
Raw sugar rose 0.8percent to 15.16 cents per lb, having closed 0.2percent up on Tuesday. Dealers said sugar was getting some support from renewed strength in oil prices. Higher energy prices tend to prompt cane mills to lower sugar production in favour of ethanol, a cane-based biofuel.
Recent rains have interrupted the cane harvest in top grower Brazil, while hot, dry weather in other areas, including the European Union, is set to diminish production prospects next season.
White sugar rose 0.8percent to USD476.10 a ton.
COFFEE
ICE arabica coffee rose 0.7percent to USD3.1100 per lb, extending Tuesday’s 1.3percent gain. Dealers said farmers in top grower Brazil are in no rush to sell until the market finds new highs. ICE exchange stocks have fallen to their lowest since January 2024. Robusta coffee rose 0.6percent to USD3,874 a ton.
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