Arabica coffee prices fell by 1.3% to $3.82 per pound, with a weekly gain of 2.4% anticipated. Concerns about Brazil’s dry weather persist, impacting crop forecasts. Cocoa and sugar markets are also reacting to changing conditions, with cocoa prices showing mixed trends and sugar futures increasing slightly.
On Friday, Arabica coffee futures experienced a decline of 1.3%, settling at $3.82 per pound. Despite this drop, the market is projected to see a weekly gain of approximately 2.4%, driven by the focus on the forthcoming crop in Brazil, the leading producer of coffee.
Concerns regarding dry weather conditions in Brazil persist. Although some rainfall is anticipated, the potential impact on crop improvement remains uncertain. Weather service Maxar reported, “Unfavourable soil moisture and mostly dry conditions will not support cherry growth,” noting that Brazil would experience dry weather for the following five days.
Global coffee traders and roasters have significantly reduced their purchases in response to a sharp price increase, which suppliers struggle to persuade retail stores to accommodate. Concurrently, Robusta coffee prices experienced a slight decline, falling by 0.2% to $5,417 per metric ton.
In the cocoa market, New York cocoa futures rose by 1.8%, reaching $8,334 per ton, although the market anticipates a weekly loss of 8.7%. The International Cocoa Organization has recently projected a worldwide surplus of 142,000 tons for the 2024/25 season, influencing market stability.
Despite the positive production outlook, the note from BMI highlights, “It is important to note that stock levels remain tight, suggesting that prices may stay elevated, even with an improved outlook.” In London, cocoa prices increased by 0.8%, reaching 6,496 pounds per ton.
In sugar markets, raw sugar futures increased by 0.8% to 18.28 cents per pound, while white sugar prices rose by 0.5% to $519.50 per ton.
In summary, Arabica coffee prices have fluctuated amid uncertainties surrounding Brazil’s weather conditions affecting crop growth. Global coffee purchases have declined significantly, influencing market dynamics. Furthermore, cocoa futures show mixed trends as improving production forecasts contrast with tight stock levels, while sugar prices experienced slight increases in both raw and white sugar futures. Overall, market participants remain alert to evolving agricultural conditions and price fluctuations.
Original Source: www.tradingview.com
