London cocoa prices climb, robusta coffee falls 2%

Mar 28, 202420:17 UTC

London cocoa futures on ICE closed up on Thursday with the market consolidating below a record high set earlier this week, while robusta coffee prices fell.

There will be no trading on ICE on Friday due to the Good Friday holiday.

COCOA

* July London cocoa C2! settled up 62 pounds, or 0.8%, to 7,725 pounds per metric ton, although prices remained well below a record peak of 8,009 pounds set on Tuesday.

* Dealers said the market's focus was turning to the mid-crop in top grower Ivory Coast, which begins next week with a decline to around 400,000 to 500,000 tons expected, down from 600,000 tons a year ago.

* "Normally, the mid-crop is less important due to its smaller size. However, given the already weak main crop, it is likely to be more important at this time. If the estimates come down further, this could provide a further boost to the cocoa price," Commerzbank said in a note.

* Some African cocoa farmers have been impacted by illegal gold mining that destroys their fields, one more reason for smaller crops.

* July New York cocoa CC2! was little changed at $9,306 a ton.

COFFEE

* May robusta coffee RC1! settled down $80, or 2.2%, at $3,479 a ton, slipping back slightly after the market's recent strong rise.

* Dealers said supplies were exceptionally tight in Vietnam while there were concerns that dry weather could reduce next year's crop in the world's top robusta producer.

* A sharp year-on-year decline in exports from Indonesia has also helped to support prices.

* May arabica coffee KC1! fell 0.9% at $1.8885 per lb.

SUGAR

* May raw sugar SB1! settled up 0.33 cent, or 1.5%, at 22.52 cents per lb.

* Dealers said recent rainfall appeared to have improved the outlook for Brazil's 2024/25 cane crop, although some concerns about dry conditions remained.

* "Brazil may have a strong early harvest, which may be bearish in the short term, but harvested cane volumes may disappoint later in the year," Rabobank said in a report.

* May white sugar SF1! rose 1.1% at $652.50 a ton.