LONDON: London cocoa futures on ICE hit their lowest in more than 1-1/2 years on Wednesday, weighed by the prospect of a global surplus in the 2025/26 season, while sugar prices also fell.
COCOA: London cocoa fell 2.7 percent to 4,193 pounds per ton at 1417 GMT after setting a more than 1-1/2-year low of 4,166 pounds. Dealers said supplies had been boosted by the start of main crop harvests in West Africa while demand remained weak.
Third-quarter grind data is due to be published later this month for Asia, Europe and North America, with year-on-year declines expected.
New York cocoa fell 2.7 percent to USD6,027 a metric ton after hitting a one-year low of USD6,013.
SUGAR: Raw sugar fell 1.6 percent to 16.36 cents per lb. Global sugar output is expected to expand by 4.0 percent to 189.6 million tons in 2025/26, partly due to rising production in India, while consumption was only seen 0.2 percent higher at 179.1 million, analysts BMI said on Wednesday.
“India’s participation in the global sugar market is expected to increase, reversing the recent trend of low export volumes that contributed to tighter global supplies,” BMI said in a note.
White sugar lost 1.3 percent to USD452.10 a ton.
Weight-loss drugs and the Make America Healthy Again campaign have led to a dramatic drop in US sugar consumption, leaving US farmers of sugar beets to rely on farm aid to make ends meet.
COFFEE: Arabica coffee gained 2.1 percent to USD3.6655 per lb as the market found support after falling on Monday and Tuesday.
Dealers said the market had been weighed this week by news that the Brazilian and US presidents had agreed to meet in person, raising the possibility that a 50 percent tariff on US imports of coffee could be reduced or removed, while noting the outcome remained uncertain.
Robusta coffee rose 1.85 percent to USD4,469 a ton.
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