Raw sugar and cocoa futures surged this week, with sugar climbing 3.3% off a 3.5-year low and cocoa bouncing back on short-term supply squeezes, while coffee prices remained range-bound amid mixed production updates.
Key Market Moves:
- Sugar (SBc1):
- Up 1.6% to 17.78¢/lb, buoyed by rising crude oil prices and Chinese demand for Brazilian exports.
- Traders note heavy vessel lineups in Brazil as the harvest accelerates, but warn global oversupply may limit further gains.
- Cocoa (LCCc2):
- Gained 4% weekly in London, with the May contract expiry driving volatility.
- Barry Callebaut shares downgraded as chocolate makers struggle with record-high cocoa costs.
- Coffee (KCc2):
- Flat at $3.8775/lb, trapped in a narrow range.
- Brazil’s crop revised up 5%, offsetting Colombia’s 5% April production drop.
Sugar, Cocoa Prices Rally as Coffee Stalls: Market Rebounds Amid Supply Shifts