LONDON: Arabica coffee futures traded on the ICE exchange hit their lowest in nearly a month on Thursday, as concerns grow that consumption might fall in response to high prices.
Coffee
Arabica coffee fell 2.6% to $3.82 per lb at 1329 GMT, having hit its lowest since early March at $3.8100.
Broker and consultant Michael J Nugent said participants remain “laser-focused” on Brazil’s rains – critical in shaping the upcoming crop and rebuilding depleted global stockpiles.
He added, however: “We are increasingly concerned record-high prices (will) collide with weakening consumer confidence.”
Roasters like Nestle and Douwe Egberts maker JDE Peet’s are currently in talks with retailers about passing on costs from a near doubling of arabica prices over the past year.
Reg Watson, director of equity research at Dutch Bank ING, believes prices will rise around 15%-25% on the shop floor and that in some markets consumers may feel the hike in one shot.
Showers and thunderstorms are expected to continue periodically through the next 10 days in Brazil’s coffee areas, but the rainfall will remain mostly light.
Robusta coffee fell 1.6% to $5,357 a ton, having hit their lowest in nearly 3 weeks at $5,308.
Supply of robusta beans tightened in top robusta producer Vietnam and No. 2 exporter Indonesia this week, with Vietnamese farmers refraining from selling the bean on hopes of higher profit.
Raw sugar steadies after hitting 1-1/2 week low
Cocoa
London cocoa edged up 0.2% at 6,269 a ton, having settled 1.1% higher on Wednesday.
Cocoa is deriving support from the potential for a significant decline in the size of the mid-crop in top producer Ivory Coast.
Capping gains however is concerns about weak demand, with first-quarter cocoa grind data in early April likely to be closely monitored.
Ultimately, the market is awaiting fresh news to trade on, dealers said.
New York cocoa rose 1% to $8,126 a ton.
Sugar
Raw sugar fell 1.9% to 19 cents per lb.
Brazil’s Sao Martinho said a fire at its Iracema plant has led to a boiler being shut down, potentially resulting in daily ethanol and sugar production at the site falling by up to 30% for the 2025-2026 harvest.
White sugar fell 1.2% to $533.70 a ton.
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