NEW YORK: Cocoa futures prices on ICE lost nearly 10% this week, as failure to go higher drove the market to some profit-taking amid reports of a possible jump in production outside of Africa.
July London cocoa settled down 269 pounds, or 2.9%, on Friday at 8,979 pounds per metric ton, more than 1,000 pounds below last week’s record high of 9,980 pounds. The contract lost 9% in the week. Dealers said the market has temporarily lost upward momentum with the potential that high prices could boost output in the coming 2024/25 season (October/September).
Poor crops in Ivory Coast and Ghana, the world’s top two producers, have led to a third successive global deficit this season and triggered a sharp rise in prices. July New York cocoa fell 1.9% to $10,594 a ton, having lost 8% this week. Reuters technical analyst Wang Tao said the market is correcting the recent highs and could fall further.
May raw sugar settled down 0.08 cent, or 0.4%, at 19.40 cents per lb. It lost 1.7% in the week. Sugar production in Centre-South Brazil was 710,00 tons in early April, up 30.97% from the same period a year earlier, according to sugar industry group UNICA. A survey issued by S&P Global Commodity Insights had estimated CS Brazil sugar production in the period at 689,300 tons.
Dealers said the expiry of the May contract on Tuesday was likely to provide a major short-term focus early next week. They noted that about 1 million tons of sugar was expected to be delivered against the contract.
August white sugar was little changed at $563.70 a ton. July robusta coffee settled down $153, or 3.6%, at $4,151 a ton, retreating from a record high of $4,338 set on Thursday. It still gained 2% in the week. Dealers said a modest setback was not unexpected, given that prices had risen by about 40% over the past two months, but the market remained underpinned by tight supplies.
Supplies are particularly tight in top robusta producer Vietnam, where concerns that dry weather could dent the outlook for the next crop also exist. July arabica coffee fell 1.8% to $2.24 per lb. The contract fell 3.4% in the week.