Arabica coffee futures hit one-month low amid forecast for rains in Brazil

LONDON — Arabica coffee futures on ICE hit a one-month low on Friday and ended the week with a net loss of 3%, amid commodities indexes rebalancing and forecast for rains in top-grower Brazil.

COFFEE: March arabica coffee settled down 2.75 cents or 1.5% at $1.828 per pound (lb), having hit a one-month low earlier at $1.820.

Dealers said the rebalancing of commodity indexes in January is likely leading to selling of arabica coffee futures by funds.

Weather remains mostly positive for crop development in topgrower Brazil, which continues to show good export flow.

Brazil exported 4.06 million bags of green coffee in December, 33% more than a year ago.

March robusta coffee rose 0.3%, at $2,795 a metric ton, extending the prior session’s gains. The contract, however, fell 2% in the week.

Dealers said prices will have to rise further to tempt farmers in top producer Vietnam to sell at regular volumes. Exporters are meanwhile struggling to deal with delivery delays from farmers, they said.

SUGAR: March raw sugar was little changed at 21.11 cents per lb. It gained 2.5% this week.

Dealers said market attention had shifted back to better-thanexpected production in major exporters Brazil and Thailand, although dry conditions in Brazil could weigh going forward.

Brazil exported 75% more sugar in December from a year ago, the government said.

Thailand is expected to produce 8-8.5 million tons of sugar in the 2023/2024 production year.

China’s sugar output in the 2023/2024 season is seen at 3.2 million metric tons, down 60,000 metric tons from a year earlier.

March white sugar was little changed, at $607.10 a ton.

COCOA: March London cocoa settled down £60 or 1.7% to £3,494 a ton, having hit a one-month low earlier at 3,484 pounds/ton. March New York cocoa fell $56 or 1.3% to $4,204 a ton. —