NEW YORK: Raw sugar futures on ICE fell for a second day on Friday, pressured by further signs of plentiful supplies in top grower Brazil, while cocoa extended its retreat from this week’s multi-month high. Arabica coffee hit a 1-1/2 year low.
SUGAR
Raw sugar settled down 0.19 cent, or 1.3percent, at 14.80 cents per lb, having lost 2.5percent on Thursday. Dealers noted that sugar is currently more profitable to produce in Brazil than hydrous ethanol, depending on the location of the mill, tempting some companies in the world’s top producer to ramp up output of the sweetener.
Sugar producer Tereos said on Thursday that Brazilian sugarcane processors are likely to produce more sugar than initially planned owing to a bigger-than-expected cane crop. Ethanol, however, might offer opportunities in the global market. Brazil and the United States are looking at expanding foreign sales as countries around the world look to boost fuel supplies. White sugar fell 1percent to USD438.50 a metric ton.
COCOA
London cocoa settled down 76 pounds, or 2.4percent, to 3,034 pounds per metric ton after losing 5percent on Thursday. The market lost 4percent in the week.
The contract hit a 3-1/2-month high of 3,549 pounds on Tuesday, but has slipped since after a pickup in selling from cocoa-growing countries.
Dealers cited talk that Ivory Coast’s harvest will come in at 2.1 million to 2.2 million tons rather than the 1.8 million tons previously expected.
Limiting losses in cocoa, however, are worries over the looming El Nino weather event. “We think cocoa will benefit the most from a potential strong El Niño. In three months, we expect cocoa prices to reach USD5,000 a ton,” a Citi note said. New York cocoa fell 4.5percent to USD4,002 a ton after retreating by 4.6percent on Thursday.
COFFEE
Arabica coffee settled down 8.8 cents, or 3.2percent, at USD2.669 per lb, having hit a 1-1/2-year low of USD2.6555. “The (Brazilian) real’s sharp sell-off on Wednesday could increase the incentive for producers and exporters to price their new crop,” said broker ADMIS. It added: “The Brazilian arabica harvest is expected to be quite large, so it is difficult for the market to build upside momentum.” Brazilian coffee producers have sold 86percent of their 2025/26 crop as of mid-April, down from 96percent a year earlier, agribusiness consultancy Safras & Mercado said. Robusta coffee fell 3.5percent to USD3,365 a ton.
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