LONDON: Coffee futures fell sharply on Wednesday, with a bumper crop expected in Brazil and sentiment of technicals becoming more bearish, while sugar prices were also lower.
COFFEE
Arabica coffee was down 2.7percent at USD2.8770 per lb at 1436 GMT. Dealers said the market continued to be weighed by the prospect of a bumper crop in Brazil this year with rains in the last few days allaying any concerns following a recent dry spell in the world’s top producer.
Price charts also appear more bearish after the market failed to breach resistance just above USD3.00 earlier this week. Robusta coffee fell 3.1percent to USD3,576 a metric ton.
SUGAR
Raw sugar fell 0.7percent to 14.28 cents per lb. The market derived support recently from gains in energy prices but has been unable to break out of its range of 13.00 to 15.00 cents a lb.
White sugar lost 0.45percent to USD416.50 a ton. Broker StoneX on Wednesday cut its forecast for a global sugar surplus in the 2025/26 season to just 870,000 metric tons, citing a lower outlook for production in India.
COCOA
London cocoa rose 0.1percent to 2,481 pounds per ton after hitting a three-week high of 2,510 pounds. Dealers said prices had rebounded strongly after slumping to a three-year low of 2,015 pounds early last week but the move may, at least temporarily, be running out of steam.
The market has been boosted partly by news of strong mid-crop sales from top grower Ivory Coast with a drop in farmer prices triggering a pick-up in demand. New York cocoa lost 0.4percent to USD3,433 a ton.
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