LONDON: London cocoa turned lower on Tuesday, after climbing to a one-year peak earlier, with the main crop season due to start in top grower Ivory Coast, while robusta coffee set a 2-1/2 month low.
COCOA
London cocoa fell 0.5percent to £4,833 a metric ton by 1112 GMT after setting a one-year high of £4,988 earlier in the session. Dealers noted a strengthening El Nino weather event could contribute to a fall in production in Ivory Coast although there may still be a global surplus in 2026/27 albeit a much smaller one than in the previous season.
Rains were below average last week in most of Ivory Coast’s cocoa-growing regions, farmers said on Monday, warning that persistent dry weather could damage and shorten the September-to-February main crop. New York cocoa lost 2.5percent to USD6,602 a ton.
COFFEE
Robusta coffee lost 2.8percent to USD3,431 a ton after setting a 2-1/2 month low of USD3,428 earlier in the session. Dealers said the robusta market currently had ample supplies with exports from top producer Vietnam running ahead of last year’s pace. Arabica coffee was down 2percent at USD3.0530 per lb. The outlook for global coffee supply looks comfortable, but harvest delays in Brazil and earthquake-linked problems in Colombia have slowed down the flow of beans from producing to consuming countries, Dutch bank Rabobank said on Monday.
SUGAR
Raw sugar fell 0.3percent to 17.75 cents per lb. However, dealers said tight supplies and strong domestic prices in top consumer India was helping underpin prices. India reduced sugar stock holding limits for dealers to 2,000 quintals, from 4,000 quintals earlier, effective from September 15 until November 30, the government said in a statement on Tuesday. White sugar gained 0.3percent to USD515.80 a ton.
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