LONDON: New York cocoa futures fell on Tuesday, extending the market’s retreat from last week’s record high, in thin trading ahead of the Christmas holiday. London-based cocoa, robusta coffee and white sugar futures had an abbreviated session and will re-open on Friday.
COCOA
New York cocoa futures on ICE were down 2.55% at $11,446 a metric ton by 1244 GMT. The market had climbed to a record high of $12,931 last week. Dealers said cocoa arrivals at ports in top grower Ivory Coast continued to run well ahead of last year’s pace, although a significant slowdown is expected in early 2025.
Farmers in some of Ivory Coast’s cocoa-growing regions are concerned about the impact of the strong Harmattan wind on the cocoa crop as it can dry the soil and harm cocoa pods.
London cocoa settled 2.5% lower at 9,134 pounds a ton. Arabica coffee futures on ICE lost 0.7% to $3.2490 per lb. Dealers said the run-up in prices to record highs has led to a pick-up in producer sales in Brazil, although activity is slowing ahead of the holiday period. The market remains underpinned by a diminished outlook for next year’s crop in Brazil after drought this year that could lead to a tightening in supplies in 2025.
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