LONDON: Cocoa futures slumped to 7-1/2 week lows on Tuesday as the market struggled to absorb more than ample near-term supplies, while sugar and coffee also fell.
COCOA
London cocoa fell 2.5percent to £3,863 per ton by 1050 GMT after setting a 7-1/2 week low of £3,799. Dealers said a more balanced market is expected in the 2026/27 season following a large global surplus in 2025/26.
Rainfall was below average last week in most of Ivory Coast’s main cocoa-growing regions, and farmers said on Monday that dry conditions could threaten the development of small pods due to be harvested next year during the September-to-February main crop. New York cocoa fell 2.4percent to USD5,222 a ton after hitting a 7-1/2 week low of USD5,111.
SUGAR
Raw sugar lost 1.8percent to 17.16 cents per lb after setting a 4-week low of 17.11 cents. Dealers said the market’s pullback from a 16-month high of 18.88 cents set on September 10 still may have further to go although the outlook is more constructive in the medium to long-term with an El Nino weather event set to dent production and potentially lead to a global deficit in the 2026/27 season.
Indonesia is expected to experience a shorter than usual rainy season starting November this year, the weather agency said on Tuesday, which could impact crops as farmers adjust their planting schedules.
Indonesia’s sugarcane harvest next year is expected to come late as farmers typically wait for the beginning of the rainy season to start planting. White sugar fell 2percent to USD497.40 a ton after setting a 6-1/2 week low of USD497.10.
COFFEE
Arabica coffee fell 0.1percent to USD2.7605 per lb after hitting a three-month low of USD2.7315. Dealers said generally favourable crop weather in top producers Brazil and Vietnam had contributed to recent weakness. Robusta coffee lost 0.7percent to USD3,315 a ton.
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