Arabica coffee prices declined slightly but are expected to gain weekly, amidst concerns over Brazil’s weather affecting crops. Cocoa prices rose in New York but are anticipated to face weekly losses due to improved production forecasts. Sugar prices saw incremental increases as markets adjust to recent trends.
Arabica coffee prices experienced a decline on Friday, although they are projected for a weekly gain, primarily due to the weather conditions affecting the upcoming crop in Brazil, the leading producer of Arabica coffee. Arabica coffee futures dropped by 1.3%, settling at $3.82 per pound, which indicates a weekly increase of 2.4%.
Concerns about dry weather in Brazil persist, with some anticipated rainfall whose efficacy in enhancing crop conditions remains uncertain. According to weather service Maxar, “Unfavorable soil moisture and mostly dry conditions will not support cherry growth,” noting that Brazil is expected to maintain predominantly dry weather over the next five days.
Coffee traders and roasters have significantly reduced their purchases, adjusting them to minimal levels as the market grapples with a substantial price surge. Suppliers have struggled to persuade retail stores to accept these heightened prices. In a related note, Robusta coffee futures fell by 0.2%, priced at $5,417 per metric ton.
In the cocoa market, New York cocoa prices increased by 1.8% to $8,334 per ton; however, a weekly loss of 8.7% is anticipated. The improved production outlook for the 2024/25 season has placed the market on the defensive, with the International Cocoa Organization forecasting a global surplus of 142,000 tons. BMI noted, “It is important to note that stock levels remain tight, suggesting that prices may stay elevated, even with an improved outlook.”
London cocoa prices rose by 0.8% to £6,496 per ton. Regarding sugar, raw sugar futures saw a 0.8% increase to 18.28 cents per pound, while white sugar rose by 0.5%, reaching $519.50 per ton.
In summary, Arabica coffee prices have dipped while remaining poised for a weekly gain, with weather conditions in Brazil being a primary concern. The cocoa market showed a mixed performance, with rising prices amid forecasts of a surplus, whereas sugar maintained modest gains. Traders have adjusted their purchasing strategies in response to fluctuating price dynamics across these commodities.
Original Source: www.tradingview.com
