LONDON: London cocoa futures slumped to their lowest in nearly three years on Friday, with weak demand leading to a supply surplus this season, while coffee prices also fell.
COCOA
London cocoa was down 3.7percent at 2,077 pounds a metric ton by 1307 GMT after touching its lowest in nearly three years at 2,064 pounds.
Dealers said weakening demand has led to a build-up in stocks, particularly in top producers Ivory Coast and Ghana.
“We believe much of this sustained reduction (in demand) reflects permanent demand erosion due to product reformulations, including reducing cocoa content and substituting with alternative ingredients, which will continue to constrain demand prospects,” analyst BMI said in a report on Friday.
New York cocoa lost 3.85percent to USD2,945 a ton after hitting USD2,925 for the weakest price since May 2023.
COFFEE
Arabica coffee lost 1.7percent to USD2.7745 per lb. Dealers said rising ICE arabica stocks and the potential for a bumper crop in Brazil this year were weighing on prices.
ICE arabica stocks stood at 466,055 bags as of February 26, up from 449,566 bags a week earlier, exchange data showed. Robusta coffee lost 0.9percent to USD3,606 a ton. It slumped to a six-month low of USD3,517 on Monday.
SUGAR
Raw sugar lost 0.2percent to 14.38 cents per lb. The International Sugar Organization expects a global sugar surplus of 1.22 million metric tons in the 2025/26 season, it said on Friday in a modest downward revision from its previous projection of a 1.63 million ton surplus.
White sugar lost 0.4percent to USD406.10 a ton.
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