LONDON: Arabica coffee futures fell to a 10-week low on Thursday, weighed partly by a favourable outlook for next year’s crop in top producer Brazil, while sugar prices rose.
COFFEE
Arabica coffee fell 2.65percent to USD2.8430 per lb by 1010 GMT, after setting a 10-week low of USD2.8355. Dealers said this year’s harvest in Brazil is now nearly complete and the focus was on switching to the 2027 crop.
Exchange certified stocks have now edged above a recent 26-year low, boosted by some additional supplies from Brazil, they said. Exchange stocks stood at 220,452 bags as of September 9, up from 218,838 bags a day earlier. At the same time last year, stocks stood at 685,945 bags, dealers noted.
There were also 54,310 bags from Brazil and 960 bags from Kenya pending grading. Robusta coffee fell 2.6percent to USD3,383 a metric ton.
SUGAR
Raw sugar rose 1.5percent to 18.67 cents per lb, climbing back towards last week’s 16-month high of 18.77 cents. Dealers said the run-up has been driven by tight supplies in top consumer India and the current strength of energy markets, which could encourage more use of cane to make biofuel ethanol.
The Indian government has asked sugar mills to ensure adequate supplies during the festival season, with domestic mills seeking to import nearly 800,000 tons of duty-free raw sugar, an official from the food ministry said on Thursday. White sugar gained 1percent to USD539.50 a ton.
COCOA
London cocoa fell 2.2percent to £4,220 per ton. Dealers noted September was trading at a discount of around £200 to December in the run-up to its expiry on September 15, indicating little appetite to take delivery of cocoa against the contract. New York cocoa fell 2.2percent to USD5,822 a ton.
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