LONDON: New York cocoa futures on ICE hit a 1-1/2 year low on Thursday amid fears a global economic downturn is hurting demand for the chocolate ingredient, while arabica coffee plumbed an eight month trough.

Cocoa

September New York cocoa fell 1.3% to $2,273 a tonne by 1213 GMT, having hit its lowest since November 2020 at $2,266.

Dealers cited a report by Reuters that consumers are cutting back on chocolate due to the cost of living crises in Europe and the United States.

The North American second-quarter cocoa grind, a proxy for demand, is scheduled for release on July 21.

September London cocoa eased 0.6% to 1,708 pounds per tonne.

NY cocoa prices edge higher as Europe Q2 grind rises

Coffee

September arabica coffee fell 2.8% to $2.0155 per lb, having hit its lowest since late October at $2.

Data showed top producer Brazil’s arabica exports picking up pace. According to exporters association Cecafe, Brazil’s arabica shipments reached 2.652 million bags in June, up 11.5% year-on-year.

Arabica is also under pressure from a weak Brazilian real, which encourages selling of dollar-priced arabica by raising returns in local currency terms.

September robusta coffee fell 2% to $1,941 a tonne.

Dealers said Brazil is nearing the end of its robusta harvest, with grain quality good and productivity excellent.

Sugar

October raw sugar fell 0.7% to 19.01 cents per lb, having hit a one-month high in the previous session.

Dealers said it is difficult to see sugar advancing much with the dollar index remaining near 20-year highs.

They added however, near term tightness in white sugar, linked in part to India’s export constraints, should limit the downside in raw sugar, keeping it around 19 cents.

August white sugar rose 0.7% to $592.40 a tonne.