Arabica coffee prices dip on Brazil rains, rising stocks

NEW YORK — Arabica coffee futures on ICE fell on Wednesday, with rains in Brazil boosting the outlook for crops and rising exchange stocks also weighing on prices.

May arabica coffee settled down 5.25 cents or 2.8% at $1.828 per pound (lb).

“If we continue to see Brazilian rains alongside stock replenishment we could see funds cut their net long position,” Rabobank wrote in a report.

ICE certified arabica stocks stood at 297,445 bags, as of Feb. 13, up 19% from 249,829 bags at the end of January.

May robusta coffee fell 2.3% at $3,090 a metric ton. March raw sugar settled up 0.07 cent or 0.3% at 23.37 cents per lb.

Dealers said forecast showers in Center-South Brazil this week could ease concerns about dry conditions, though doubts remain over whether there will be sufficient rain to make a significant difference.

Analyst Green Pool downgraded its forecast for the 2024/2025 cane crop in CS Brazil late last week, saying that some yield potential had already been lost.

March white sugar expired little changed at $658.70 a ton, with traders saying 5.239 lots were delivered.

Raw sugar prices are expected to post an annual gain of nearly 20% in 2024 as the global market shifts into a deficit in the upcoming season.

May London cocoa settled down £11 or 0.2% to £4,690 per ton.

Dealers said the market was consolidating after its recent run to record highs, but prices remain underpinned by supply tightness after poor crops in the world’s top two producers, Ivory Coast, and Ghana.

May New York cocoa fell 1.2% to $5,584 a ton.

Hershey and Cadbury are planning more price increases to cover another record-setting surge in cocoa prices. —