LONDON: Arabica coffee futures were lower on Friday, slipping further away from a record high earlier this week, while raw sugar and cocoa prices rose.
Coffee
Arabica coffee was down 1.35% at $4.1915 per lb by 1233 GMT after a record high of $4.2995 on Tuesday.
Dealers said the market was underpinned by tight supplies and the prospect of a smaller arabica crop in top grower Brazil this year.
The longer-term outlook is less bullish, however, partly owing to a more favourable outlook for next year’s Brazil harvest.
Arabica coffee futures are expected to fall by about 30% by the end of 2025, with recent record prices expected to curb demand and early signs pointing to a bumper Brazilian crop next year, a Reuters poll showed on Thursday.
Robusta coffee lost a marginal 0.02% to $5,787 a metric ton, holding just below Thursday’s record high of $5,849.
Arabica coffee turns lower after hitting record high
Sugar
Raw sugar rose 0.25% to 20.22 cents per lb, climbing towards the previous session’s two-month high of 20.24 cents.
Dealers said Indian sugar exports had slowed because of rising domestic prices and even the current export quota of one million tons might not be fulfilled.
“Adverse weather in key sugar-producing states has led to the closure of several sugar mills. Consequently, further easing of export restrictions from India is unlikely, providing a price floor,” BMI said in a note on Friday.
White sugar lost a marginal 0.04% to $529.30 a ton.
A total of 411,200 metric tons of mostly Guatemalan white sugar has been tendered against the March contract on ICE Futures Europe, exchange data showed on Friday.
Cocoa
New York cocoa futures rose 0.3% to $10,567 a ton.
Dealers said the market was supported by concerns that dry weather in top grower Ivory Coast could curb the size of the April to September mid-crop at a time when stocks are tight.
London cocoa was up 0.5% at 8,318 pounds a ton.
Comments