LONDON: Arabica coffee futures on ICE fell sharply on Wednesday, retreating from the prior session’s near seven-month high, while sugar prices were also lower.
Coffee
Arabica coffee was down 4.7% at $3.9045 per lb by 1417 GMT, retreating from a near seven-month high of $4.24 set on Tuesday.
Dealers said a setback in prices was not unexpected given the extent to which they have risen recently.
The run-up has been driven by fund buying against the backdrop of tight supplies in the United States following the imposition of a 50% tariff on shipments from Brazil.
Robusta coffee lost 4.8% to $4,550 a metric ton.
Sugar
Raw sugar fell 0.8% to 15.77 cents per lb.
Dealers noted sugar production in Center-South Brazil during the second half of August was broadly in line with expectations at 3.872 million metric tons.
A survey of 11 analysts published by S&P Global Commodity Insights had a consensus for sugar production of 3.8 million.
White sugar was down 1.2% at $460.20 a ton.
Cocoa
London cocoa rose 0.1% to 5,093 pounds per ton.
Dealers said the market was focussed on the development of main crops in West Africa with the 2025/26 season due to start next month with concerns about diseases such as black pod continuing to underpin prices.
The world could lose a third of its cocoa supply, or 1.5 million tons, over the next 15 years if no action is taken to tackle climate change and disease, an industry executive who buys a substantial amount of the chocolate-making ingredient, said on Wednesday.
New York cocoa gained 0.6% to $7,338 a ton.