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SOFTS-Coffee rallies on tight stocks, raw sugar hits 2-1/2 year lows

ReutersApr 15, 2025 6:38 PM

- Coffee prices rose on Tuesday as investor focus returned to extremely tight stocks and relief in wider markets after U.S. President Donald Trump's latest changes in tariff policy , while raw sugar hit the lowest price in more than two years.

Investors remain concerned, however, that a global trade war could weaken economic growth.

COFFEE

* Arabica coffee futures KCc2 traded on the ICE exchange settled up 8.65 cents, or 2.4%, at $3.6715 per lb, having lost 2.7% last week. Robusta coffee futures LRCc2 rose 1.9% to $5,340 a metric ton, having declined by 1.5% last week.

* Consultancy Safras & Mercado said on Tuesday that Brazil's production could be a bit bigger than expected in 2025. It, however, estimates farmers have sold only 14% of the new crop versus a 25% long-term average for the period, citing uncertainty over production prospects.

* A dealer said he expects arabica to recover to a range of $3.60 to $3.80 per lb this week, given supply jitters and tight stocks.

COCOA

* London cocoa futures LCCc2 settled down 168 pounds, or 2.8%, to 5,805 pounds per ton. New York cocoa CCc2 fell 2.9% to $7,926 a ton.

* Cocoa investors continue to fear a downturn in demand for the chocolate ingredient, with first-quarter cocoa grind data - a measure of demand - likely to show steep falls of 5% to 7%, dealers said.

* Brazil cocoa grind fell 13% in the first quarter.

* Most areas of Ivory Coast, Cameroon and Nigeria are expected to receive beneficial rain over the next week to 10 days.

SUGAR

* Raw sugar SBc1 settled down 0.35 cent, or 2%, at 17.52 cents per lb, having hit a 2-1/2 year low of 17.51, while white sugar LSUc1 fell 2.7% at $513.10 a ton.

* "Uncertain demand driven by an uncertain global economic outlook remains a concern," said broker ADMISI.

* Sugar production in top producer Brazil's centre-south region was nearly 10% higher than a year earlier in the second half of March as mills allocated more cane to sugar production.

* Elsewhere, France's farm ministry estimated the sugar beet area for this year's harvest at 391,000 hectares, down from 412,000 hectares in 2024 and 2.9% below the five-year average.

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