LONDON: Arabica coffee futures on ICE fell sharply on Wednesday as exchange stocks continued to climb while sugar and cocoa prices were also lower.
COFFEE: March arabica coffee fell 2.1% to $1.6120 per lb by 1520 GMT although the market remained well above last week’s 16-month low of $1.5405.
ICE certified coffee stocks stood at 530,105 bags on Nov. 23, well above a 23-year low of 382,695 bags set on Nov. 3. There were 543,512 bags pending grading.
Dealers said the market was underpinned, however, by reports that Brazil’s crop next year may be smaller than previously expected.
They also noted the US Department of Agriculture had downgraded 2022/23 (July/June) production outlooks for both Brazil and Colombia.
January robusta coffee fell 1.8% to $1,801 a tonne.
SUGAR: March raw sugar fell 1% to 19.55 cents per lb, weighed down partly by lower energy prices.
Commonwealth Bank of Australia analyst Tobin Gorey noted the outlook for cane crushing in Thailand had been downgraded.
“Wet conditions, and earlier flooding, have had an impact. So crushing will now start later than expected in early December. And, we suspect, sugar recoveries will also be down,” he said in a note.