Arabica coffee futures fell by 5.6% due to anticipated rains in Brazil, reversing previous gains. Cocoa futures saw a slight increase after a recent low, while sugar futures declined further amidst China’s agricultural adjustments. The overall trends reflect concerns regarding supply and production across these commodities.
Arabica coffee futures experienced a notable decline on Thursday, falling by 22.8 cents or 5.6% to settle at $3.8715 per pound, reversing the gains achieved in the previous session. This downturn follows forecasts predicting the return of rains to Brazil, the world’s largest coffee producer, despite previous hot and dry conditions that had previously boosted prices. Concerns regarding soil moisture continue to persist, affecting market dynamics.
Market analysts suggest that heavy selling by funds contributing to profit-taking may have influenced the recent price movements. Additionally, Brazilian coffee traders Atlantica and Cafebras have sought bankruptcy protection in order to restructure approximately 2.12 billion reais ($368.5 million) in debt, a situation that had already been anticipated by traders.
Robusta coffee futures also fell, declining 3.8% to $5,427 per metric ton, although domestic prices in Vietnam saw a slight increase following a global price rise. However, Vietnam’s coffee exports dropped by 23.5% in the first two months of the year compared to the previous year, indicating potential supply concerns.
In the cocoa market, New York cocoa futures settled at $8,187 per ton, marking an increase of $121 or 1.5%, rebounding from a recent low of $7,770. Despite this improvement, Swiss chocolate maker Lindt & Spruengli faced a downgrade by Baader Helvea, citing valuation issues and future outlook uncertainties, alongside increased material costs prompting potential price hikes. Concerns about high cocoa prices affecting chocolate consumption remain prevalent.
Sugar futures did not escape the downward trend, with raw sugar settling at 18.13 cents per pound after hitting a 1.5-month low of 17.84 cents. China’s strategic plan to enhance the cultivation of oilseed crops and stabilize sugar production aims to address the shifting dynamics in the global market, where white sugar prices also experienced a drop, settling at $516.90 per ton.
In summary, Arabica coffee futures have declined due to forecasts of increased rainfall in Brazil, while robusta coffee prices declined slightly amid Vietnam’s falling export statistics. Cocoa futures rebounded from lows despite ongoing concerns about market pressures affecting chocolate consumption. Sugar futures continued to face downward pressure amid China’s plans to stabilize production in the agricultural sector. The interplay of these crops highlights the intricate dynamics affecting global commodity markets.
Original Source: www.tradingview.com
