- September arabica coffee edged up 0.4% to $1.5380 per lb, having hit its lowest since late May on Tuesday at $1.5280.
- September London cocoa fell 0.7% to 1,621 pounds per tonne.
LONDON: Arabica coffee futures on ICE steadied on Wednesday after falling in the prior session, with much-needed rains in top producer Brazil pressuring prices. Cocoa fell again on ample supplies.
September arabica coffee edged up 0.4% to $1.5380 per lb, having hit its lowest since late May on Tuesday at $1.5280.
Coffee has been easing off a 4-1/2 year high hit earlier this month with the return of rains in Brazil.
Citi said in a note it remains bullish arabica longer-term, seeing prices averaging $1.65 in the fourth quarter as the drought-like conditions in Brazil have already damaged the current and next season's crop.
Green coffee stocks stored at US ports rose for the second consecutive month at end-May, up 52,571 60kg bags to 5.81 million. They hit their lowest since June 2015 in late March.
September robusta coffee slipped 0.3% to $1,596 a tonne.
September London cocoa fell 0.7% to 1,621 pounds per tonne.
September New York cocoa was 0.5% down at $2,415 a tonne.
"Cocoa markets remain in hefty surplus and prices are unlikely to rally much until possibly 2022/23," said Citi.
It said it sees prices averaging just $2,400 a tonne in the fourth quarter as it raised its surplus forecast for the current season by 75,000 tonnes to 225,000 tonnes.
The bank also sees a surplus of 100,000 tonnes next season.
July raw sugar edged up 0.2% to 17.09 cents per lb, having fallen 1.4% in the prior session.
Dealers said sugar remains under pressure from a lack of nearby demand and improving weather in major producers like India, Thailand, and even Brazil.
They added, however, that end users are keen to buy around 16.90 cents, limiting the downside, with the upside capped at 18 cents - a level that would likely prompt selling by producers.
August white sugar edged up 0.2% to $441.80 a tonne.