LONDON: Arabica coffee futures were lower on Friday, slipping further away from a record high earlier this week, while raw sugar and cocoa prices rose.
Arabica coffee was down 1.35% at $4.1915 per lb by 1233 GMT after a record high of $4.2995 on Tuesday. Dealers said the market was underpinned by tight supplies and the prospect of a smaller arabica crop in top grower Brazil this year. The longer-term outlook is less bullish, however, partly owing to a more favourable outlook for next year’s Brazil harvest.
Arabica coffee futures are expected to fall by about 30% by the end of 2025, with recent record prices expected to curb demand and early signs pointing to a bumper Brazilian crop next year, a Reuters poll showed on Thursday.
Robusta coffee lost a marginal 0.02% to $5,787 a metric ton, holding just below Thursday’s record high of $5,849. Raw sugar rose 0.25% to 20.22 cents per lb, climbing towards the previous session’s two-month high of 20.24 cents.
Dealers said Indian sugar exports had slowed because of rising domestic prices and even the current export quota of one million tons might not be fulfilled. “Adverse weather in key sugar-producing states has led to the closure of several sugar mills.
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