LONDON: Arabica coffee futures on ICE rose on Wednesday, climbing away from the prior session’s 1-1/2 year low, while cocoa prices were also higher.
COFFEE: Arabica coffee was up 1.2 percent at USD2.4730 per lb at 1325 GMT. The market slumped to a 1-1/2 year low of USD2.4270 on Tuesday.
Dealers said the bounce was largely driven by technical factors with the market becoming heavily oversold after the recent slide in prices.
The market’s overall focus remained on Brazil’s harvest with a near-record crop expected but showers set to slow progress in some areas this week.
Cooxupe, Brazil’s largest coffee co-operative, said on Wednesday that its farmers had harvested 12 percent of their 2026 crop as of June 5, below the 13.7 percent reported at the same time last year.
Robusta coffee gained 2.1 percent to USD3,362 a metric ton.
Farmers in Vietnam appear reluctant to sell following recent weakness in prices, slowing the flow of supplies from the world’s top robusta producer.
COCOA: London cocoa rose 0.1 percent to £2,931 per ton.
Dealers noted the strong pace of arrivals in top grower Ivory Coast during the current 2025/26 season and a generally favourable outlook for the rest of the mid-crop were keeping a lid on prices.
The outlook for production in 2026/27, however, is less favourable with early signs pointing to smaller crops in both Ivory Coast and Ghana.
New York cocoa gained 0.9 percent to USD3,864 a ton.
SUGAR: Raw sugar was down 0.4 percent at 14.03 cents per lb.
Dealers said supplies remained comfortable boosted partly by a larger-than-expected crop in China.
There is also talk that Pakistan may authorize sugar exports in the near future.
White sugar fell 0.5 percent to USD442.70 a ton.