LONDON: Cocoa futures on ICE eased on Wednesday although remained above this week’s two-month lows, while arabica coffee recouped the prior session’s steep losses.
COCOA: New York cocoa was down 0.3 percent at USD7,006 a metric ton by 1425 GMT after hitting a two-month low of USD6,896 on Tuesday.
Dealers said industry buying had helped stabilise the market after the recent decline in prices, which was driven partly by origin hedge-selling ahead of the start of the 2025/26 season on October 1.
The prospect of a further delay in the implementation of the EU’s anti-deforestation law has also contributed to this week’s decline in prices.
London cocoa fell by 0.3 percent to 4,903 pounds a ton after setting a two-month low of 4,874 pounds on Tuesday.
COFFEE: Arabica coffee rose by 4 percent to USD3.4370 per lb as the market wiped out prior session’s losses.
A meeting next week between US President Donald Trump and Brazil’s President Luiz Inacio Lula da Silva will be closely watched with the possibility that a 50 percent US tariff on Brazil coffee could be revised. Dealers said it appeared to be a sign that the relationship between the two leaders had improved although it remained uncertain that a compromise on coffee can be achieved.
Robusta coffee gained 2.7 percent to USD4,229 a ton.
SUGAR: Raw sugar rose by 0.3 percent to 15.71 cents per lb.
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