NEW YORK: Raw sugar futures on ICE fell on Friday, as the Brazilian real weakened and the market consolidated following three consecutive sessions of gains linked to rains in top grower Brazil. Sugar posted a 9.8 percent gain in October.
A weaker real encourages mills, farmers and exporters in Brazil to sell dollar-priced futures because it raises their returns in local currency terms.
SUGAR
Raw sugar settled down 0.11 cent, or 0.6 percent, at 19.36 cents per lb. “The trade is weighing the collapse of the Brazilian real this week against more evidence of problems with this year’s production because of too much rain,” said broker ADMIS in a note.
Dealers noted heavy selling from Brazilian mills on ICE, as they lock in currency gains for their future sugar exports. Sugar production in Brazil’s key center-south region fell 27.1 percent in the first half of October from a year earlier to 1.87 million metric tons, the Agriculture Ministry said on Wednesday.
More rains are forecast for next week in Brazil, slowing the harvest, reducing the sugar content in the cane and increasing the chances of an early end to the harvest.
The rains are linked to the El Nino weather pattern. White sugar fell 2.1 percent to USD516.30 a ton.
COFFEE
ICE arabica coffee futures settled up 1.75 cent, or 0.6 percent, at USD2.872 per lb, having hit their lowest since late September on Thursday. Arabica lost 1.2 percent in October.
The market is under pressure overall from improved supplies. Data showed the relentless drawdown in ICE-certified stocks is starting to moderate, with bags pending grading or quality controls gaining 5 percent overnight to nearly 44,000, and stocks rising 1.4 percent to 225,068.
Robusta coffee rose 0.9 percent to USD3,204 a ton, having hit its lowest since March 2024 on Monday. Robusta lost 6 percent in the month.
Robusta is also under overall pressure, with exchange stocks rising strongly and the harvest getting underway in top grower Vietnam.
COCOA
London cocoa settled down £21, or 0.5 percent, to £4,234 per ton, having hit a three-week low of £4,183.
Cost-of-living pressures are a big challenge for chocolate makers Hershey and Mondelez this year, with data from market researcher NIQ showing US consumers are so far spending less on Halloween treats than in previous years.
Against that however, cocoa markets are expected to tighten going forward.
Analysts at Expana have reduced their 2026/27 forecast for top grower Ivory Coast by 40,000 tons to 1.83 million, citing “moisture stress”.
New York cocoa was little changed at USD5,453 a ton.
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