LONDON: Robusta coffee futures on the ICE slid to a fresh seven-month low on Monday, recovering later to trade in positive territory, while sugar prices fell.
COFFEE
Robusta coffee was up 0.6percent at USD3,476 a metric ton at 1410 GMT, after setting a seven-month low of USD3,415. The contract lost 8percent last week.
Farmers in top robusta producer Vietnam have begun releasing more beans, though a Vietnam-based dealer said they are not panic selling yet, despite fears prices could fall further due to the Middle East conflict.
Arabica coffee rose 1.6percent to USD2.8960 per pound, having lost 2.8percent last week. StoneX broker Tomas Araujo said he continues to expect a significant increase in Brazilian output in 2026/27 thanks to expanded coffee growing areas, better crop management, improved genetic materials - especially for robusta - and benign weather.
SUGAR
Raw sugar fell 1.1percent to 14.21 cents per pound, extending its 1.9percent decline last week. Traders continue to weigh the impact of higher energy prices on sugar due to the Iran war, even as the conflict is expected to turn demand for the sweetener in the Gulf region bearish as shipments are obstructed.
Rising energy prices can prompt cane mills in top grower Brazil to cut sugar output and instead produce more ethanol, a cane-based biofuel. Brazil’s state-controlled oil company Petrobras is yet to increase local gasoline prices, but has raised diesel rates.
The European Commission plans to suspend some duty-free sugar imports for at least a year to support prices in the bloc, Bloomberg News reported on Friday, citing Agriculture Commissioner Christophe Hansen. White sugar fell 0.7percent to USD412.00 a ton.
COCOA
London cocoa rose 1percent to 2,435 pounds per ton, following a 4percent gain the previous week. Rains were below average last week in most of top grower Ivory Coast’s main cocoa regions, farmers said, but added soil moisture content was enough to boost the March-to-August mid-crop.
“The market found support a couple of weeks ago after Ivory Coast and Ghana appeared to find a solution to the backup of supply, but there is still the issue of strong production this year,” said broker ADMIS. New York cocoa fell 1.8percent to USD3,253 a ton.
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