403
Sorry!!
Error! We're sorry, but the page you were
looking for doesn't exist.
Cocoa Prices Soar To Seven-Month High Amid Supply Concerns
(MENAFN- The Rio Times) The cocoa market witnessed a significant upturn as futures prices in New York reached a seven-month peak. This marks the fifth consecutive week of gains, driven by growing supply worries. The market's concerns intensified due to reports of payment delays in physical cocoa trading.
On Monday, ICE cocoa futures in New York closed at $11,821 per metric ton, up $521 or 4.6%. This surge brings the contract close to its all-time high of $12,261, set in April. The market's bullish sentiment persists despite potentially bearish news.
Traders noted the market's resilience in the face of increased cocoa arrivals at Ivory Coast ports. The world's largest producer saw a 33% rise in arrivals compared to the previous season. However, this news failed to dampen the upward price trend.
StoneX, a prominent brokerage firm, highlighted severe liquidity issues in physical cocoa markets. They reported delayed payments and a scarcity of new purchase agreements. These factors contribute to the overall market tightness.
Meanwhile, the coffee market also experienced notable movements. Arabica coffee futures on ICE rose by 7.9 cents, or 2.5%, to $3.274 per pound. This price, however, remains below Tuesday's record high of $3.4835.
Brazil, the world's largest coffee producer, reported strong sales for the 2024/25 season. This indicates that farmers are financially secure and may not rush to sell more. Robusta coffee also saw a modest 0.4% increase, reaching $5,203 per ton.
Cocoa Prices Soar to Seven-Month High Amid Supply Concerns
Experts anticipate Brazilian robusta exports in 2025 to match the strong performance of 2024. This development positions Brazil as a viable alternative to Vietnamese robusta in the global market.
In contrast, raw sugar futures experienced a slight dip. Prices fell by 0.04 cents, or 0.2%, to 20.68 cents per pound. This decline follows a 5% drop in the previous week, with prices touching a three-month low of 20.43 cents.
Market analysts at McDougall Global View Sugar Report provided insights on the sugar market. They noted an upward adjustment in Brazilian crop estimates. However, they cautioned that low stocks leave the market vulnerable to price spikes.
The sugar market remains sensitive to potential weather-related production issues in India, Thailand, or Brazil. Any significant disruptions in these key producing regions could trigger rapid price increases in the coming months.
On Monday, ICE cocoa futures in New York closed at $11,821 per metric ton, up $521 or 4.6%. This surge brings the contract close to its all-time high of $12,261, set in April. The market's bullish sentiment persists despite potentially bearish news.
Traders noted the market's resilience in the face of increased cocoa arrivals at Ivory Coast ports. The world's largest producer saw a 33% rise in arrivals compared to the previous season. However, this news failed to dampen the upward price trend.
StoneX, a prominent brokerage firm, highlighted severe liquidity issues in physical cocoa markets. They reported delayed payments and a scarcity of new purchase agreements. These factors contribute to the overall market tightness.
Meanwhile, the coffee market also experienced notable movements. Arabica coffee futures on ICE rose by 7.9 cents, or 2.5%, to $3.274 per pound. This price, however, remains below Tuesday's record high of $3.4835.
Brazil, the world's largest coffee producer, reported strong sales for the 2024/25 season. This indicates that farmers are financially secure and may not rush to sell more. Robusta coffee also saw a modest 0.4% increase, reaching $5,203 per ton.
Cocoa Prices Soar to Seven-Month High Amid Supply Concerns
Experts anticipate Brazilian robusta exports in 2025 to match the strong performance of 2024. This development positions Brazil as a viable alternative to Vietnamese robusta in the global market.
In contrast, raw sugar futures experienced a slight dip. Prices fell by 0.04 cents, or 0.2%, to 20.68 cents per pound. This decline follows a 5% drop in the previous week, with prices touching a three-month low of 20.43 cents.
Market analysts at McDougall Global View Sugar Report provided insights on the sugar market. They noted an upward adjustment in Brazilian crop estimates. However, they cautioned that low stocks leave the market vulnerable to price spikes.
The sugar market remains sensitive to potential weather-related production issues in India, Thailand, or Brazil. Any significant disruptions in these key producing regions could trigger rapid price increases in the coming months.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.
Most popular stories
More Story
Comments
No comment