LONDON: Raw sugar futures on the ICE exchange steadied on Tuesday after hitting their lowest level in nearly five years in the prior session, while coffee and cocoa continued to head lower.
SUGAR
Raw sugar edged up 0.3% to 14.49 cents per lb at 1115 GMT, having hit its lowest since December 2020 at 14.34 on Monday.
Sugar broker and consultant Mike Mcdougall said recent consensus on Brazil sugar output amongst six different brokers, traders and analysts was for 42.28 million tons in 2026/27 versus 40.52 million in 2025/26.
This, coupled with looming corn ethanol production and no serious weather issues is weighing on sugar, he said.
Broker ADM Investor Services noted that no significant production threats have emerged this year for sugar while long term demand expectations have been trimmed back thanks to the success of weight-loss drugs.
In news, European crop monitoring service MARS increased its sugar beet yield outlook to 76.3 t/ha for the current season, from 74.8 t/ha projected last month.
White sugar was little changed at $422.30 a metric ton, having hit its lowest since July 2021 at $415.20 on Monday.
COFFEE
Arabica coffee fell 1.3% to $3.8525 per lb, having settled down 3.2% on Monday.
Dealers said there was more downside risk in coffee if Brazil’s President Luiz Inacio Lula da Silva and U.S. President Donald Trump strike a trade deal that removes or lowers the 50% U.S. tariff on imports from Brazil.
They also noted much needed rains have returned to top coffee grower Brazil.
Limiting losses however, consumption data remains mixed, they said, while tensions are escalating between the U.S. and No. 3 coffee producer Colombia.
Robusta coffee fell 0.5% to $4,430 a ton, after closing down 2.3% on Monday.
COCOA
London cocoa fell 1.2% to 4,343 pounds per ton, having settled down 3.6% on Monday.
Dealers cited hedging pressure from origin countries and reports that the trade deal inked at the weekend between the U.S. and Malaysia includes 0% tariffs for cocoa and processed cocoa products.
They also noted the Ivory Coast presidential elections have concluded with no major unrest, and cocoa arrivals at Ivorian ports are improving. They were reported this week down 24.9% from last year’s levels, versus last week’s 31% fall.
New York cocoa fell 0.9% to $6,124 a ton, after closing down 2.2% on Monday.
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