Arabica Coffee Futures Dip Amid Brazil Harvest

Coffee traders closely watched Monday’s moves on global futures markets, where key contracts for both coffee and sugar posted notable losses. The declines came amid shifting supply signals, particularly from Brazil—the world’s largest coffee producer—just as its harvest season gets underway. For buyers, roasters, and investors tracking specialty coffee pricing, these movements could signal short-term volatility in the coming weeks.

In short: On June 24, ICE September Arabica coffee futures dropped 1.15 cents (0.6%) to $1.7625 per pound, while LIFFE September Robusta fell 10 dollars (0.5%) to $1,972 per tonne. ICE September cocoa slid 37 dollars (1.2%) to $3,043 per tonne, and LIFFE September cocoa lost 13 pence (0.7%) to $1,910 per tonne. July raw sugar fell 0.04 cents (0.2%) to $17.81 per pound, while August white sugar rose slightly.

Why Did Arabica Coffee Futures Decline?

The September Arabica contract on ICE closed at $1.7625 per pound after falling as much as 2.8% intra-day. This decline came as Brazil, a major producing country, entered its harvest period. Market participants remain cautious due to lingering uncertainty over the impact of dry weather experienced in Brazil between January and February, which could affect yields. Despite the dip, prices had been under pressure throughout a volatile trading session.

Cocoa Futures Extend Losses After Recent Highs

On ICE, September cocoa futures also declined for a fourth straight session, correcting from a recent rally. The contract dropped 37 dollars (1.2%) to $3,043 per tonne. This comes after the same contract hit a three-year high of $3,128 per tonne just last Thursday. Over in London, LIFFE September cocoa futures dropped 13 pence (0.7%) to $1,910 per tonne, reflecting broad weakness in the cocoa market despite earlier strength.

Sugar Futures Mixed as Expiry Nears

In the sugar market, July raw sugar futures on ICE fell marginally by 0.04 cents (0.2%) to $17.81 per pound. This contract is set to expire on June 30. Meanwhile, Liffe August white sugar futures eked out a small gain, rising 0.30 dollars (0.06%) to $490.10 per tonne. The differing moves reflect slight divergences between raw and refined sugar pricing as the market approaches key contract dates.

What Drives Coffee Futures Pricing?

Coffee futures prices are influenced by a mix of factors including weather conditions in key growing regions like Brazil, harvest timelines, global demand forecasts, and macroeconomic indicators. In Brazil, dryness during the early months of the year raised concerns over flowering and cherry development, though the full impact won’t be clear until more data emerges during harvest. At the same time, the start of the harvest typically increases supply expectations, which can weigh on near-term prices—especially if early reports suggest average or better yields.

Frequently Asked Questions

Why did ICE September Arabica coffee futures fall on June 24?

ICE September Arabica coffee futures fell by 1.15 cents (0.6%) to $1.7625 per pound due to increased supply expectations as Brazil’s harvest season begins, along with ongoing uncertainty about the impact of January–February dry weather on the crop.

How much did LIFFE September Robusta coffee futures drop?

LIFFE September Robusta coffee futures declined by 10 dollars (0.5%) to $1,972 per tonne on the same day.

What caused the drop in cocoa futures?

ICE September cocoa futures fell 37 dollars (1.2%) to $3,043 per tonne, correcting after hitting a three-year high of $3,128 per tonne on June 20. LIFFE September cocoa also dropped 13 pence (0.7%) to $1,910 per tonne.

Why were there mixed movements in sugar futures?

July raw sugar futures fell slightly by 0.04 cents (0.2%) to $17.81 per pound, while August white sugar futures rose 0.30 dollars (0.06%) to $490.10 per tonne. The raw sugar contract expires on June 30, contributing to the differing trends.

When does the July raw sugar contract expire?

The July raw sugar futures contract on ICE is set to expire on June 30, which often leads to reduced trading volumes and price adjustments as the contract nears its final settlement.

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