LONDON: London cocoa futures fell sharply on Wednesday, extending the market’s retreat from the previous session’s one-year high, while arabica coffee prices sank to a five-week low.
COCOA: London cocoa slid 5.9 percent to £4,533 a metric ton by 1332 GMT. The market had risen to a one-year high of £4,988 on Tuesday.
Dealers said there may still be a global surplus despite an expected decline in production in top grower Ivory Coast in the 2026/27 season that started this week.
“We expect the global cocoa surplus to narrow sharply from 442,000 tons in 2025/26 to 82,000 tons in 2026/27, underpinning a firmer price floor,” BMI analysts said in a note on Wednesday.
Ample cocoa stockpiles should help to cushion any hit to global production from adverse weather, a Mondelez International executive said on Wednesday.
New York cocoa lost 5.9 percent to USD6,181 a ton.
COFFEE: Arabica coffee was down 2.1 percent at USD3.03 per lb after hitting a five-week low of USD2.9905.
Dealers said there had been a pick-up in exports from Brazil as the harvest nears its end, helping to ease short-term supply tightness.
Cooxupe, Brazil’s largest coffee cooperative, said on Wednesday that its farmers had harvested 91.9 percent of their 2026 crop by August 28, up from 87.5 percent a week earlier but lagging the 94.9 percent at the same point last year.
Robusta coffee lost 1 percent to USD3,426 a ton after matching a 2-1/2-month low of USD3,405 set on Tuesday.
SUGAR: Raw sugar rose 0.3 percent to 18.41 cents per lb after climbing by 3.1 percent on Tuesday.
Dealers said tight supplies and strong domestic prices in top consumer India helped to fuel the recent run-up in prices, along with the prospect of lower production in the European Union and Thailand.
White sugar lost 0.1 percent to USD533.40 a ton.