NEW YORK: Cocoa futures on the Intercontinental Exchange hit a four-month low as stocks in exchange warehouses continue to rise, while sugar also fell.
London cocoa settled down £162, or 2.6%, to £6,072 per tonne, after hitting a four-month low of £5,969. It lost 3% in the week.
New York cocoa fell 3.8% to US$7,765 a tonne, having hit a four-month low of US$7,639. However, it was flat for the week.
Dealers noted that stocks held in exchange warehouses in the United States remain near their highest in four months.
They also cited reports that top producer Ivory Coast will not have to cancel export contracts this year, despite the dismal outlook for the mid-crop.
Reuters reported earlier this week that dry weather is expected to reduce the size of the Ivorian mid-crop by 40%.
Alex Assanvo, executive secretary of the Ivory Coast-Ghana Cocoa Initiative, said that the fall in cocoa output in Ivory Coast and Ghana for the current season is “significant”.
Raw sugar settled down 0.28 US cents, or 1.4%, at 19.72 US cents per kg, having hit a two and a half week high earlier this week, while white sugar fell 2.1% at US$552.40 a tonne.
Dealers said recent scattered showers in top producer Brazil’s sugar belt has improved the 2025 production outlook somewhat, but more rain is needed.
Robusta coffee rose 0.3% at US$5,515 a tonne, having gained 2% in the week. — Reuters
