New York cocoa rises from two-year lows, Robusta coffee declines

LONDON: New York cocoa futures on the ICE exchange recovered on Friday from near two-year lows hit in the prior session as demand weakness was seen as already priced in following data from Asia. COCOA New York cocoa rose 1.2 percent to USD5,026 a metric ton at 1310 GMT, after slumping to a near two-year low of USD4,839 on Thursday.

Asia’s fourth-quarter cocoa grind, a measure of demand, fell 4.82percent from a year earlier, data showed earlier. The numbers followed a slight 0.35percent fourth-quarter uptick in the North American grind.

Dealers said the figures were slightly better than expected, partially offsetting Thursday’s much larger than forecast 8.3percent decline in Europe’s fourth-quarter cocoa grind, which hit a 21-year low. Even after Friday’s modest recovery, dealers said the overall market tone remained bearish.

“With all the data in, it looks like global grinds in the fourth quarter were down 7percent. Ecuador’s December exports in bean equivalent were 64,000 metric tons (up 16percent).

None of this (price) friendly,” said a dealer. Industry newsletter CocoaRadar meanwhile noted that “supply prospects are stabilising”.

London cocoa rose 1percent to 3,687 a ton, after losing 2.3percent on Thursday.

COFFEE

Robusta coffee fell 0.3percent to USD3,993 a ton, having settled 1.2 percent higher on Thursday. Robusta remains underpinned by lack of selling appetite in Vietnam, and by seasonal weather in the world’s top coffee grower.

Arabica coffee fell 0.7percent to USD3.5565 per lb, having closed up 0.6percent on Thursday. Dealers noted signs of reduced tensions between the US and Colombia, the world’s third-largest coffee producer, anecdotal reports that Brazil’s crop is developing well, and expectations that ICE-exchange stocks are set to increase.

SUGAR

Raw sugar rose 1.9percent to 14.84 cents per lb, having settled 0.7percent lower on Thursday. Sugar is hovering not far off 5-year lows hit late last year as an anticipated global surplus this season continues to weigh on the market, despite expectations for the surplus to shrink in 2026/27.

Germany’s sugar refiner Nordzucker warned on Thursday it would swing to an annual operating loss on depressed EU sugar prices. White sugar rose 1.8 percent to USD425.60 a ton.