London cocoa prices decrease from record peak while coffee falls sharply

NEW YORK — London cocoa futures on ICE closed lower on Friday as the market extended its retreat from a record high set earlier this week, while coffee prices fell sharply.

COCOA

May London cocoa settled down 119 pounds or 2.2% at 5,231 pounds per metric ton, slipping further back from a record high of 5,620 pounds set on Tuesday. The contract lost 1% in the week.

Dealers said the market was looking technically weak at the moment after breaching support at the 10-day moving average and may fall further in the short term.

Fundamentals remain supportive, however, with poor crops in Ivory Coast and Ghana this season forecast to lead to a large global deficit.

May New York cocoa fell 0.9% to $6,396 a ton.

Top cocoa producers Ivory Coast and Ghana will keep farmgate prices unchanged for their respective mid-crop and lightcrop harvests despite current record global price levels, sources within their marketing bodies told Reuters on Friday.

COFFEE

May robusta coffee fell 2.5% to $3,297 a ton, with the market slipping from the prior session’s peak of $3,460 — the highest since the current form of the contract started trading in January 2008. The contract gained 5% in the week.

Strong demand and depleted stocks in top robusta producer Vietnam continued to underpin prices.

“The Vietnam local coffee market remains red hot, with local prices absorbing the entire rally of ICE futures and more. Differentials show no signs of easing,” said a local broker.

May arabica coffee fell 3.6% to $1.852 per pound (lb). It gained 1% in the week.

SUGAR

May raw sugar settled down 0.13 cent or 0.6% at 21.15 cents per lb. The contract gained 0.3% weekly.

Dealers said the market was underpinned by the prospect of a smaller cane crop in Center-South Brazil in the upcoming 2024/2025 season.

An improving outlook for sugar production in major exporter Thailand, however, helped to keep a lid on prices.

May white sugar fell 1.1% to $597.50 a ton.