LONDON: Cocoa prices hit fresh five-month lows on Tuesday as investors remain rattled by recession risks in the wake of U.S. President Donald Trump’s sweeping trade tariffs, though some held on to hopes that Washington might negotiate.
U.S. Treasury Secretary Scott Bessent met with Trump in Florida on Sunday, Politico reported, to urge him to emphasise striking trade deals to reassure markets there is an endgame to his strategy.
Investors fear a global trade war could spur higher prices, leading to weaker demand and potentially a global recession.
Cocoa
London cocoa traded on the ICE exchange was down 2.6% at 5,860 pounds per metric ton at 1132 GMT, having hit its lowest since Nov. 13 at 5,835.
Dealers said cocoa remains dominated by wider recession fears, even though there are no let up in worries over the upcoming mid-crop in top producer Ivory Coast.
Rains were below-average in most of Ivory Coast’s main cocoa growing regions last week, farmers said.
New York cocoa fell 1.6% to $7,790 a metric ton, having closed down 6.1% on Monday.
Cocoa, coffee, sugar prices slide as markets remain rattled by Trump tariffs
Coffee
Arabica rose 0.9% to $345.15 per lb, having hit a two-month low on Monday.
An international coffee trade house said U.S. roasters who have bought coffee from countries facing steep tariffs like Vietnam, Indonesia and Nicaragua should consider “talking to their clients about other options”.
“It seems that a more difficult global trade environment is here to stay,” the trade house said in a note to clients.
Vietnam, Indonesia and Nicaragua face tariffs of 46%, 32% and 18%, respectively.
Robusta coffee futures traded up 0.2% at $4,811 a metric ton, having earlier hit a four-month low of $4,740.
Sugar
Raw sugar fell 0.2% to 18.64 cents per lb, having earlier hit a one-month low of 18.60.
White sugar fell 0.8% at $529.90 a metric ton, having hit a near one-month low of $529.50.
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