Supply Chain

Coffee Hits 14-Month Low Amid Upbeat Supply Outlook, Demand Woes

By Donna Ahern
Coffee Hits 14-Month Low Amid Upbeat Supply Outlook, Demand Woes

Arabica coffee futures on ICE (Intercontinental Exchange) fell to a 14-month low on Wednesday as supply prospects improve, exports pick up pace and worries over demand escalate.


* December arabica coffee was 2.1% lower at $1.8185 per pound at 1347 GMT​​ after slumping to a 14-month low of $1.813.

* Dealers noted output in top washed arabica producers Colombia and Central America is expected to rise in the 2022/23 (October-September) season as the weather has been generally favourable.

* Costa Rica's coffee production will likely grow 11.5% in the 2022-2023 harvest, officials said, boosted by new plantations and a larger crop during the biannual cycle.


* Meanwhile, the weather in top producer Brazil remains favourable, exports are picking up pace and concerns escalate that a global economic downturn could curb demand.

* January robusta coffee fell 3% to $1,889 a tonne - its lowest in 14 months.


* March raw sugar was 0.6% lower at 17.99 cents per lb. The contract hit a three week low of 17.93 cents.

* Dealers said Brazil’s sugar production looks likely to exceed last season's total and everything is pointing to much higher production next season, meaning a global surplus now seems certain with concerns over demand adding to the mix.


* Agricultural consultancy Datagro said on Wednesday that top producer Brazil's sugar output next season could grow to 38.5 million tonnes from the current 33.2 million tonnes on better climate conditions.

* December white sugar slipped 0.2% to $523.50 a tonne.


* December New York cocoa slipped 0.3% to $2,290 a tonne.

* Cadbury chocolate-maker Mondelez has pledged to spend an additional $600 million by 2030 on efforts to combat child labour, farmer poverty and deforestation in cocoa.


* March London cocoa fell 0.9% to 1,867 pounds per tonne​.

News by Reuters, edited by Donna Ahern, Checkout. For more supply chain stories, click here. Click subscribe to sign up for the Checkout print edition.

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