LONDON: Arabica coffee futures on ICE fell to a three-month low on Wednesday as an improving outlook for crops in leading producers Brazil and Vietnam kept the market on the defensive.
COFFEE
Arabica coffee fell 0.55percent to USD2.7080 per lb by 1000 GMT after hitting a three-month low of USD2.7065. Dealers said further rains were forecast for parts of Brazil’s coffee belt as the outlook for next year’s crop remains generally favourable.
“There will be a boost in soil moisture and flowering with the incoming rains. Dryness will remain to the north (of Brazil’s coffee belt) though,” Vaisala’s weather service said in a daily update. Vaisala also said cherry growth should continue in Vietnam, the biggest producer of robusta, due to additional rains and favourable soil moisture.
Dealers noted that exchange-certified arabica stocks were creeping up but remained very low. Stocks stood at 256,678 bags, as of September 22, up from a 27-year low of 217,646 bags a week ago. At the same time last year stocks stood at 643,341 bags.
Robusta coffee lost 1.1percent to USD3,224 a ton after slumping to a 3-1/2 month low of USD3,218.
SUGAR Raw sugar fell 0.3percent to 17.54 cents per lb. Dealers said supplies of sugar remained ample with front month October, which is due to expire next Wednesday, trading at a discount of around one cent to March.
The medium-term outlook, however, is more constructive with the El Nino weather event likely to curb production in producers such as India and Thailand. White sugar lost 1percent to USD502.60 a ton. COCOA London cocoa fell 1.1percent to £3,954 per ton. Dealers said the market continued to struggle to absorb the 2025/26 season’s large global surplus. New York cocoa lost 1.55percent to USD5,318 a ton.
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