LONDON: Cocoa futures traded on the ICE exchange tumbled on Monday after the International Cocoa Organisation (ICCO) forecast a surplus in the current 2024/25 season, while coffee futures headed back up.
Cocoa
New York cocoa fell 6.1% to $8,569 a metric ton by 1443 GMT.
The ICCO forecast late on Friday a global cocoa surplus of 142,000 tons in the current 2024/25 season as high cocoa prices have incentivised farmers to increase crop care while cocoa users are reducing their purchases due to soaring costs.
The surplus follows three straight seasons of deficit that have depleted global stockpiles.
A Reuters poll published in early February forecast a balanced cocoa market this season.
Cocoa arrivals at top producer Ivory Coast’s ports are up 15.8% from the season start to March 2 versus the same period a year ago, exporters estimated.
ICE New York cocoa speculators cut their net long position by 5,866 contracts to 5,868 in the week to February 25.
London cocoa fell 7.2% to 6,814 pounds per ton.
Ivory Coast cocoa traders take issue with major contracts as prices surge
Coffee
Arabica coffee rose 1.6% to $3.7905 per lb, having lost 4.1% last week.
Arabica has stabilised after tumbling from a record peak of $4.2995 set on February 11.
Dealers noted forecasts for continued dry weather in top producer Brazil’s coffee regions this week, which could stress the crop and impact cherry development.
The market is focused on the upcoming Brazil crop given that the country’s stockpiles are nearly depleted following last year’s drought.
Against that however, there are also concerns that rising prices are hurting demand.
Robusta coffee rose 0.6% to $5,360 a ton, having lost 7% last week.
Sugar
Raw sugar futures ?fell 0.7% to 18.39 cents per lb, adding to last week’s 8.4% drop.
Deliveries of raw sugar on the expiry of the March contract were seen at 34,385 lots, or 1.74 million metric tons, the largest ever for that contract, according to preliminary information from traders on Friday.
Large deliveries are usually seen as bearish for the market.
White sugar fell 1% to $527.20 a metric ton, after losing 4.9% last week.