Subscribe Login
Supply Chain

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.

Coffee

* 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.

Sugar

* 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.

Cocoa 

* 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.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

LIMITED TIME OFFER: 20% Off Our Premium Subscription
Enjoy full access to all website and app content, our weekly email news digest, and to Checkout Magazine 12 times a year (including our Top 100 Brands 2022 edition).
LIMITED TIME OFFER: 20% Off Our Premium Subscription
LIMITED TIME OFFER: 20% Off Our Premium Subscription
Enjoy full access to all website and app content, our weekly email news digest, and to Checkout Magazine 12 times a year (including our Top 100 Brands 2022 edition).
LIMITED TIME OFFER: 20% Off Our Premium Subscription