LONDON: Raw sugar futures on ICE slumped on Monday, heading away from last week’s more than one-year highs as the market reassessed near-term supply fears.
SUGAR
Raw sugar fell 2.3percent to 17.20 cents per lb at 1158 GMT, having hit a peak of 18.26 cents last Thursday after India said it would allow duty-free raw sugar imports of 1 million metric tons.
On Monday though, the Indian Sugar Mills Association said India, the world’s second largest sugar grower, does not have a shortage of the sweetener and the supply situation is “fundamentally strong.”
Broker ADMIS noted that the market at its peak last week had gained 27percent in just three weeks. It added there is talk that high prices have prompted hedge selling in top grower Brazil.
Rains have ebbed in Brazil, meanwhile, allowing the harvest to move quickly, noted broker and consultant Michael McDougall. Limiting losses in sugar, the market continues to price in crop losses from heat and drought in Europe, excess rains in Brazil in June and the threat of even drier conditions in Asia thanks to the El Nino weather pattern.
White sugar fell 3 percent to USD534.70 a metric ton, having hit its highest since March 2025 at USD566.80 last week.
COFFEE
Robusta coffee was little changed at USD3,621 a ton, having closed down 2.2percent on Friday. The market is pricing in rising exchange inventories and is also keeping a watch on the crop in top robusta grower Vietnam, which is developing well for now. By contrast, Indonesia remains dry as the world’s second largest robusta exporter feels the brunt of El Nino-induced dryness that has not really shown up in Vietnam.
Arabica coffee rose 2.1percent to USD3.2955 per lb, heading back towards last week’s one-month high amid critically low exchange stocks. Looking ahead, arabica prices are expected to fall 8.8percent by the end of 2026 as the 2026/27 market surplus is seen swelling to 8.2 million bags from 1.7 million, according to a Reuters poll. COCOA
London cocoa fell 2percent to £4,235 per ton, having gained 4percent last week. New York cocoa fell 2.5percent to USD5,883 a ton.
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