Coffee
July robusta coffee futures (LRCc1) experienced a significant rise, closing up $93, or 2.2%, at $4,270 per metric ton. Earlier, it reached a one-month peak at $4,388.
The supply of beans in Vietnam remains tight, forcing some roasters to source from Brazil to meet their needs, traders reported. Despite recent rainfall in Vietnam’s coffee regions, it arrived too late to prevent crop damage.
In Brazil, market participants noted an increase in domestic robusta prices driven by strong demand from Vietnam.
Meanwhile, July arabica coffee (KCc1) saw an uptick of 1.5%, ending at $2.33 per pound.
Cocoa
July London cocoa futures (LCCc1) declined by 124 pounds, or 1.6%, to 7,420 pounds per ton, following a 6.6% gain on Wednesday, marking a sixth consecutive session of increases.
The cocoa market continues to be supported by a significant global deficit for the 2023/24 season. The International Cocoa Organization is expected to release an updated forecast in the coming days.
In Ivory Coast, the cocoa regulator announced that exporters would no longer receive a discount on 150,000 tons of purchase contracts deferred from the main crop to the current mid-crop. Exporters predict this move will lead to substantial financial losses, as they are now paying more for beans.
July New York cocoa (CCc1) dropped 0.6%, settling at $9,257 per ton.
Sugar
July raw sugar futures (SBc1) fell by 0.16 cents, or 0.9%, to 18.19 cents per pound, continuing the previous session’s decline.
Brazil’s sugar production remains ahead of last year’s pace, although market analysts anticipate a slower second half of the season.
In India, monsoon rains reached Kerala’s coast on Thursday, two days earlier than expected. This relief from the heat wave is expected to enhance prospects for bumper harvests, including sugar.
August white sugar (LSUc1) decreased by 0.6%, closing at $540.10 per ton.
Additionally, Ukraine has announced a formal ban on sugar exports to the European Union for the remainder of the year, as it has fulfilled its EU quota.