LONDON: London cocoa futures fell sharply on Wednesday, extending the market’s retreat from the prior session’s 3-1/2 month high, while coffee and sugar prices rose.
COCOA
London cocoa lost 8.5percent to 3,140 pounds a metric ton by 1336 GMT. Prices had risen to a 3-1/2 month high of 3,549 pounds on Tuesday.
Dealers said there had been a pick-up in origin selling following the recent run-up in prices while the decline gathered momentum as sell-stops were triggered when key support levels were breached. New York cocoa fell 7.9percent to USD4,225 a ton.
COFFEE
Arabica coffee gained 1.6percent to USD2.8455 per lb, climbing further away from a 1-1/2 year low of USD2.68 on Monday.
Dealers said a decline in exchange arabica stocks was helping to underpin the market although there were concerns that an El Nino weather event could curb global production.
ICE certified arabica stocks stood at 471,831 bags, as of May 12, down from 497,926 a week ago and 843,903 a year ago. Robusta coffee rose 2.8percent to USD3,580 a ton.
SUGAR
Raw sugar rose 1percent to 15.16 cents per lb. Dealers said the market continued to keep a close watch on early progress in the cane harvest in Brazil. “While the current week-ahead forecast indicates low rainfall in Centre-South Brazil’s major sugarcane-producing areas, the two-week-ahead forecast looks wetter, which could slow the pace of the harvest toward the end of the month,” Rabobank said in a note. Elevated energy prices could encourage mills to use cane to produce biofuel ethanol, reducing sugar production.
Agribusiness consultancy Datagro projected on Wednesday record ethanol production in Brazil for the 2026/27 crop year, with nationwide output estimated at 41.4 billion liters. White sugar gained 1.4percent to USD448 a ton.
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