LONDON: Arabica coffee futures edged higher on Friday while raw sugar prices were flat with both markets on track for weekly losses.
Coffee
Arabica coffee rose 0.7% to $3.8155 per lb at 1211 GMT although the market was on track for a weekly loss of 2.5%.
Dealers said showers in Brazil coffee areas could aid cherry growth although more rain is needed. There are also concerns that demand may be weakening as retail prices climb.
“We expect tight stock levels in Brazil to continue bolstering coffee prices throughout 2025, while flagging that the potential impact of high prices on demand is a downside risk for prices,” analyst BMI said in a weekly update.
Robusta coffee rose 0.35% at $5,380 a metric ton.
Arabica coffee futures hit lowest in nearly a month
Sugar
Raw sugar was unchanged at 19.09 cents per lb and was on track for a weekly loss of 3.2%.
Dealers noted the pace of sugar cane crushing in Center-South Brazil in the first half of March was stronger than expected, albeit lower than the same period a year ago.
They also noted that more mills were expected to start crushing in the second half of March, helping to lessen concerns about a potential poor start to the 2025/26 season.
Sugar cane crushing in Brazil’s center-south region in the first half of March fell 18% to 1.83 million tons from a year earlier, while sugar production was down 19%.
White sugar was unchanged at $537.80 a ton.
Cocoa
New York cocoa rose 1.2% to $8,077 a ton and was on track for a weekly gain of 4%.
Dealers said the market continued to derive support from an expected drop in the size of the mid-crop in top producer Ivory Coast.
London cocoa rose 1.4% to 6,250 pounds per ton.
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