London cocoa slides nearly 6% after setting record high

NEW YORK — London cocoa futures on ICE closed sharply lower on Tuesday after setting a record peak, while robusta coffee prices rose to their highest level in more than 16 years.

COCOA: July London cocoa settled down £525 or 5.9% to £8,348 per metric ton after hitting a record £9,025 earlier in the session.

First-quarter cocoa grind data for Europe and North America is due on Thursday with year-onyear declines expected.

Dealers said any fall would mainly be seen as a reflection of a shortage of beans rather than an indication that high prices are beginning to curb demand.

Brazilian cocoa grind fell 6% in the first quarter to 59,900 tons, said industry group AIPC, blaming falling arrivals from farmers. Brazil cocoa arrivals fell 31% in the first quarter.

July New York cocoa fell by 7% to $$9,819 a ton.

COFFEE: July robusta coffee settled up $28 or 0.7% at $3,977 a ton after peaking at $4,036, the highest level since the current form of the contract started trading in 2008.

Dealers said supplies in Vietnam were very tight while dry weather threatens to reduce the size of the next crop in the world’s top robusta producer.

July arabica coffee rose 0.7% to $2.2840 per pound (lb).

Dealers noted the recent run-up in arabica prices had been driven by fund buying against a backdrop of falling ICE certified stocks.

SUGAR: May raw sugar settled down 0.39 cents or 1.9% at 19.63 cents per lb after touching a 16-month low of 19.28 cents.

Dealers said that strongerthan-expected sugar production in India and Thailand had put the market on the defensive.

Recent rain in Brazil has also improved the outlook for cane production in the 2024/2025 season and a weakening of the Brazilian currency is likely boosting selling by mills there. Brazil’s real hit a one-year low on Tuesday.

August white sugar fell 1.8% to $570 a ton.

A total of 313,950 tons of white sugar have been tendered against the May contract on ICE Futures Europe, exchange data showed on Tuesday. —