LONDON: New York cocoa futures fell on Wednesday as concerns that a global economic downturn could curb consumption in the second half of the year weighed on sentiment.
September New York cocoa fell 0.6% to $2,339 a tonne by 1357 GMT, slipping back towards a one-year low of $2,275 hit last week.
Consumers are cutting back on chocolate due to the cost of living crises in Europe and the United States, according to new data and comments from executives at the world’s biggest chocolate companies.
Europe’s second-quarter cocoa grind rose 2% from a year earlier to 364,081 tonnes, the Brussels-based European Cocoa Association said on Wednesday.
The North American second-quarter cocoa grind is scheduled to be issued on July 21.
September London cocoa fell 0.9% to 1,739 pounds a tonne.
September arabica coffee rose 1.6% to $2.0860 per lb, extending the market’s rebound from a two-month low of $2.0475 set on Tuesday.
The market remained underpinned by the current low level of exchange certified stocks, while the harvest in top producer Brazil is slightly behind last year’s pace.
ICE certified stocks fell to 769,446 bags, as of July 12, the lowest level since September 1999.
September robusta coffee rose 1.5% to $1,983 a tonne.
October raw sugar rose 1.6% to 18.99 cents per lb.
Dealers said a report from industry group UNICA issued on Tuesday showed the cane crush in Centre-South Brazil was lower than expected in the second half of June, although the impact on sugar prices was offset by mills using a higher-than-anticipated proportion of cane to produce the sweetener rather than biofuel ethanol.
August white sugar rose 1.4% to $587.10 a tonne.