Arabica Coffee Futures Plunge 5.9% Amid Sugar Drop

Coffee traders and market watchers were met with sharp declines across key commodities Wednesday, as ICE Arabica coffee futures suffered their steepest single-day drop since May. The move came alongside steep falls in sugar and a continued retreat in cocoa, as traders reacted to shifting supply dynamics and technical market signals. For anyone watching the global coffee market, the numbers tell the story plainly — and the impact is already rippling through pricing discussions.

In short: ICE December Arabica coffee futures dropped 11.35 cents (5.9%) to $1.8125 per pound, the largest one-day decline since May, driven by technical weakness. ICE 10-year sugar futures hit their lowest level since June 2010, falling to 14.43 cents per pound before closing at 14.52 cents, down 2.4%. Cocoa also pulled back from recent highs.

Why Did Arabica Coffee Futures Fall So Sharply?

The December contract for Arabica coffee on ICE saw heavy selling, losing 11.35 cents to close at $1.8125 per pound — a 5.9% drop that marked the largest daily decline since May. This plunge came as the market exhibited signs of technical weakness, with prices falling below prior support levels and triggering increased sell-off activity. Volume spiked as a result, with more than 206,000 contracts trading hands, over double the 250-day average.

What Happened in the Sugar Market?

The broader commodity selloff was led by sugar. ICE October raw sugar futures dropped to 14.43 cents per pound — the lowest level since June 2010 — amid ample supplies from Brazil, which is in the peak of its cane harvesting season. The contract ultimately settled at 14.52 cents, down 0.36 cents (2.4%). Trading volumes surged, reflecting heightened market activity. London’s LIFFE October white sugar futures also fell, dropping 9 dollars (2.2%) to $396.60 per ton, hitting a contract low of $394.90 earlier in the session.

And What About Cocoa and Robusta Coffee?

Cocoa, which had been trading near three-year highs, continued to retreat. ICE December cocoa futures slipped 16 dollars (0.5%) to $3,063 per ton. In London, LIFFE December cocoa futures fell 7 pounds (0.4%) to $1,988 per ton. Meanwhile, robusta coffee also saw losses, with LIFFE November robusta futures down 50 dollars (2.4%) to $2,018 per ton.

What Do These Moves Mean for Coffee Prices Going Forward?

The steep decline in Arabica futures reflects both technical factors and broader market sentiment. With sugar dropping to multi-year lows due to strong Brazilian supply and cocoa pulling back from highs, the commodity complex has seen broad-based downward pressure. For coffee, the technical breakdown triggered stop-loss selling and increased volume, signaling renewed bearish momentum. These moves could signal further near-term volatility, especially as traders monitor harvest reports, inventory levels, and macroeconomic indicators.

Frequently Asked Questions

How much did ICE Arabica coffee futures drop on September 10?

ICE December Arabica coffee futures fell by 11.35 cents (5.9%) to close at $1.8125 per pound — the largest one-day percentage drop since May.

What was the lowest level for ICE sugar futures in 2024?

ICE October raw sugar futures dropped to 14.43 cents per pound, the lowest since June 2010, before settling at 14.52 cents, down 2.4% for the day.

Why did sugar futures fall so sharply?

Sugar futures dropped due to ample supplies from Brazil, which is in the peak of its sugarcane harvesting season, along with high global inventory levels.

Did other coffee or commodity markets also decline?

Yes. LIFFE November robusta coffee fell 2.4% to $2,018 per ton, while ICE December cocoa dropped 0.5% to $3,063 per ton and LIFFE December cocoa fell 0.4% to $1,988 per ton.

What caused the big drop in Arabica coffee futures?

The decline was driven by technical weakness, with prices breaking below key support levels, triggering increased selling volume (over 206,000 contracts traded, more than double the 250-day average).

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