LONDON: Arabica coffee futures on the ICE exchange hit fresh five-week lows on Thursday on favourable weather and upbeat supply prospects, while raw sugar slid from 16-month peaks hit in the prior session.
COFFEE
Arabica coffee was down 0.8percent at USD2.9560 per lb at 1324 GMT after hitting a fresh five-week low of USD2.8975. A pick-up in exports from top grower Brazil is helping ease short-term supply tightness, while the return of rains bodes well for the upcoming crop, dealers said.
Brazil’s 2026/27 coffee crop is seen at a record 77.2 million bags thanks to favourable weather, StoneX said, raising its outlook 2.6 percent from its March estimate.
Robusta coffee was down 1.2 percent at USD3,366 a metric ton, after hitting a 2-1/2-month low of USD3,330.
SUGAR
Raw sugar slid 4.9percent to 17.79 cents per lb after hitting its highest since April 2025 at 18.77 on Wednesday. “There is no fundamental reason for the drop. The pullback look(s) to be more a consolidation move,” said broker and consultant Michael McDougall.
Sugar prices are being driven by widespread expectations of a looming deficit, with the International Sugar Organization forecasting a 300,000-ton shortfall in the 2026/27 season. White sugar fell 3.5 percent to USD520.10 a ton.
COCOA
London cocoa fell 0.7percent to £4,547 per ton. The market hit a one-year high of £4,988 on Tuesday. Cocoa output in No. 2 grower Ghana is forecast to drop 18percent to 38percent in 2026/27 due to ageing trees, disease and failing pollination, the state-run cocoa marketer said.
The El Nino weather pattern is also a concern for cocoa. Against that, however, ample global cocoa stockpiles should help cushion any hit to production from adverse weather, a Mondelez International executive said. The cocoa market still expects a surplus in 2026/27, albeit a narrow one. New York cocoa lost 0.7percent to USD6,229 a ton.
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