LONDON: Arabica coffee futures fell to a three-week low on Wednesday, extending their decline from a record peak set this month, while cocoa prices edged higher.
Coffee
Arabica coffee was down 0.3% at $3.7470 per lb by 1128 GMT after touching a three-week low of $3.6630.
Dealers said a setback in prices was to be expected given the extent of the run-up during the first few weeks of 2025, with the market setting a record high of $4.2995 this month.
“The (technical) indicators are pointing to a further decline in prices in the near term,” broker Sucden Financial said in a note.
Robusta coffee was down 1% at $5,354 a metric ton.
Coffee and tea company JDE Peet’s on Wednesday beat market expectations for 2024 operating profit and forecast a small decline in 2025, driven by soaring coffee bean prices.
Arabica coffee prices extend fall; cocoa edges up
Cocoa
New York cocoa rose 0.2% to $8,820 a ton as the market edged away from Monday’s three-month low of $8,308.
Dealers said funds were scaling back a net long position, with the market showing signs of weakness this year after rising sharply in 2023 and 2024.
Prices are down 20% so far this year.
Recent rains have improved the outlook for Ivory Coast’s April to September mid-crop, but overall production in the world’s top grower is expected to be around the same level as the previous season and sharply below 2022/23, dealers said.
London cocoa gained 0.4% to 7,130 pounds a ton.
Sugar
Raw sugar futures lost 0.6% to 21.34 cents per lb, slipping from the previous session’s two-month high of 21.57 cents.
Dealers said recent strength had been driven partly by dry weather in top producer Brazil and lower than expected output in India, the world’s second-biggest grower.
White sugar was down a marginal 0.04% at $563.60 a ton.
Comments