22Apr
Cocoa prices have surged recently, driven by strong demand and ongoing supply concerns, while sugar and coffee markets have experienced declines due to improved weather conditions and shifting supply dynamics.
Cocoa: Prices Climb Amid Supply Constraints
Cocoa futures have risen sharply, with prices reaching $11,559 per metric ton, marking a 3.5% increase. This uptick is attributed to supply concerns, particularly from Ghana, where production challenges persist. Despite an increase in cocoa arrivals in Ivory Coast to 1.109 million tons this season, up from 873,000 tons last year, dry weather conditions in West Africa continue to pose risks to the crop . The global cocoa market has been grappling with a significant supply deficit, estimated at 478,000 tons for the 2023/24 marketing year—the largest in over six decades. This shortfall has driven global cocoa stocks to their lowest level in more than a decade.
Sugar: Prices Decline on Improved Crop Outlook
Raw sugar prices have fallen to a five-month low, decreasing by 1.6% to 19.33 cents per pound. This decline is influenced by recent rains in Brazil, which have improved the outlook for the 2025/26 sugarcane crop. Additionally, strong cane crushing in Thailand has contributed to limiting price increases. In India, the arrival of monsoon rains, albeit later than usual, has alleviated concerns over sugar planting delays, further contributing to the bearish sentiment in the sugar market.
Coffee: Mixed Trends Amid Weather Improvements
Coffee markets have shown mixed trends. Robusta coffee prices have increased by 0.3% to $4,984 per ton, driven by tight supplies from Vietnam, where exports fell 17.2% in 2024. Conversely, Arabica coffee prices have remained stable, with certified stocks rising to their highest level since June 2022.Improved rainfall in Brazil, a key Arabica producer, has bolstered hopes for better fruit production, contributing to the stabilization of Arabica prices.
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