LONDON: New York cocoa futures eased slightly on Wednesday and were on track for a steep annual decline, weighed down by both rising output and declining demand.
COCOA
New York cocoa fell 0.3percent to USD6,043 a metric ton by 1152 GMT.
Dealers said the market was on track for an annual decline of about 48percent this year with a sharp rise in prices in 2024 leading to both a decline in demand and a boost in supplies. Cocoa was one of the strongest performing commodities in 2024 with New York prices rising 178 percent.
The market was also focused on New York cocoa’s addition to the Bloomberg Commodity Index in 2026 that is expected to lead to around 30,000 to 40,000 lots of buying in early January. London cocoa gained a marginal 0.1percent to 4,370 pounds a ton.
COFFEE
Arabica coffee rose 0.03 percent to USD3.5030 per lb with the market on course for an annual gain of about 10percent. Dealers said the market continued to be underpinned by low certified exchange stocks. ICE certified arabica stocks stood at 455,727 bags, as of December 30, down from 991,080 bags a year ago. Robusta coffee gained 0.8percent to USD3,978 a ton.
SUGAR
Raw sugar rose 1.2 percent, at 15.02 cents per lb, but was on track for an annual decline of about 22 percent. A rise in sugar production in the 2025/26 season has seen the global market shift into surplus, driving down prices. White sugar gained 1 percent to USD430.20 a ton.
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