LONDON: Arabica coffee futures on ICE fell to 1-1/2-year lows on Friday with supplies set to be boosted by a near-record crop in Brazil this year while cocoa prices were also lower.
COFFEE
Arabica coffee was down 0.8percent at USD2.4520 per lb at 1118 GMT after setting a 1-1/2 year low of USD2.4490. The market was on track for a weekly loss of 7.7percent. Dealers said the harvest of a near-record crop in Brazil was keeping the market under pressure.
Weather service Vaisala said in a note that the weather in Brazil coffee areas would be mostly dry during the next five days allowing the harvest to progress.
Coffee production in Brazil in the 2026/27 season should hit 71.9 million bags, up from 63 million in the previous season, the US Department of Agriculture said. Robusta coffee fell 1.2percent to USD3,313 a metric ton.
COCOA
London cocoa fell 3.3percent to £2,898 per ton and was heading for a weekly loss of 1.9percent. Dealers said weak demand remained a bearish influence although some expect it to pick-up later this year. The market was also underpinned by expectations that an El Nino weather event could curb production in West Africa during the 2026/27 season. New York cocoa lost 3.3percent to USD3,833 a ton.
SUGAR
Raw sugar was up 0.8percent at 14.39 cents per lb and was on track for a weekly gain of 2.3percent. Dealers were keeping a close watch of monsoon season in India, the world’s number two sugar producer, with a slow start raising some crop concerns. They noted, however, it was too early to draw firm conclusions. White sugar fell 0.2percent to USD448.30 a ton.
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