LONDON: Arabica coffee futures on ICE fell on Friday and were on track for a third consecutive weekly decline, as an improving outlook for the crop in top grower Brazil weighed on prices.

Coffee

March arabica coffee fell 1.3% to $1.4740 per lb by 1236 GMT. The front month fell to a low of $1.4205 on Wednesday, its weakest level since May 2021.

The market has fallen by about 12% in 2023.

Dealers said the outlook for the arabica crop in Brazil had improved after recent rains.

“An end to Brazil’s dry spell eased concerns over Brazil’s crops,” Fitch Solutions said in a note.

Dealers noted the recent fall in prices had led to increased demand for exchange stocks.

ICE certified coffee stocks stood at 845,578 bags, as of Jan. 12, down 4,823 bags from a day earlier.

March robusta coffee fell 0.2% to $1,878 a tonne.

Arabica coffee prices set 1-1/2 year low, sugar climbs

Sugar

March raw sugar fell 0.2% to 19.55 cents per lb, although the market was on track for a weekly gain of about 3% as it continued to derive support from supply tightness which is expected to continue throughout the first quarter.

Dealers said the market was subdued with some traders squaring positions ahead of the long holiday weekend in the United States.

March white sugar was up 0.2% at $540.20 a tonne.

Cocoa

March London cocoa rose 1.1% to 2,074 pounds a tonne.

March New York cocoa rose 0.8% to $2,660 a tonne.