LONDON: Arabica coffee futures on ICE steadied on Monday after hitting a fresh 10 week low on looming increases in certified stocks and rains in top grower Brazil.
Raw sugar and cocoa also edged up meanwhile.
COFFEE
Arabica coffee edged up 0.2percent to USD2.8630 per lb at 1223 GMT, having set a fresh 10-week-low of USD2.8150. Exchange data showed nearly 65,000 bags of arabica are pending grading or quality controls so they can be certified as deliverable against ICE contracts.
Dealers, brokers and analysts told Reuters last week that traders are planning, over the next couple of months, to deliver at least 300,000 bags of arabica to ICE exchange warehouses, where stocks have sunk to 26-year lows.
A broker said the potential for rising stocks plus flowering in Brazil thanks to the rains is putting arabica under pressure overall. Robusta coffee fell 0.4percent to USD3,513 a ton, having posted a 3percent gain last week.
SUGAR
Raw sugar rose 1percent to 18.32 cents per lb, heading back near last week’s 16-month peak of 18.88. The US Department of Agriculture has cut its 2026/27 sugar production forecast to 8.84 million short tons (ST), the smallest volume since 2019/20.
Elsewhere, sugar remains underpinned by looming supply tightness in India, Thailand and Europe, as well as strength in energy markets, which can encourage more use of cane to make the biofuel ethanol rather than sugar.
Oil prices rose on Monday, remaining above USD100 a barrel as the US-Iran war put more Gulf oil supplies out of reach. * White sugar rose 0.9percent to USD527.60 a ton.
COCOA
London cocoa rose 1.1percent to £4,378 per ton, having lost 4percent last week. “Two risks sit outside the current price. EUDR compliance (struggles) and a stronger Harmattan. For now the market is willing to look past all of it and trade decent short-term availability instead,” said commodity intelligence firm Vesper.
New York cocoa rose 0.8percent to USD6,011 a ton, having lost 4percent last week.
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