LONDON: Cocoa futures slid to their lowest levels in more than two years on Friday as weak demand led to a build-up in stocks, while arabica coffee dipped to a 5-1/2-month low and sugar also fell.
COCOA
New York cocoa lost 2.85percent to USD4,058 a metric ton by 1242 GMT after slumping to a more than two-year low of USD3,931.
Dealers said weak demand had led to a build-up on unsold supplies in both Ivory Coast and Ghana while the prospect of another global surplus in 2026/27 added to the bearish mood.
Cocoa demand has fallen sharply after prices nearly tripled in 2024, prompting chocolate makers to reformulate ingredients and shrink the size of their bars. London cocoa dropped 3.8percent to 2,802 pounds a ton after hitting a more than two-year low of 2,728 pounds.
COFFEE
Arabica coffee was down 1.4percent at USD3.4090 per lb after dropping to a 5-1/2 month low of USD3.3765. Dealers noted a larger arabica crop was expected in Brazil this year with a good volume of rain in the later part of January improving conditions ahead of the harvest, according to analysts and data. Low exchange stocks, however, should underpin prices.
“We expect prices to remain elevated in the coming weeks, underpinned by persistently tight total stocks relative to historical averages and sustained weather risks,” analysts BMI said in a note. Robusta coffee lost 0.3percent to USD4,166 a ton.
SUGAR
Raw sugar fell 1.6percent to 14.47 cents per lb after hitting a six-week low of 14.40 cents. Dealers said a strong end of the crop in India had added to excess supplies this season. White sugar lost 0.95percent to USD408.30 a ton.
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