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Coffee downgraded US rating revised to negative

Published: 2025-12-06 Author: World Gafei

Last Updated: 2025/12/06, Cocoa futures prices also closed lower in light trading because of poor macro-economic data and expectations that cocoa exports in Ivory Coast, the main cocoa producer, will resume in the near future. The dollar scaled back gains against the euro and fell to a day's low against the yen, while gold hit a record high after Standard & Poor's revised its rating outlook for the United States to negative, triggering high sentiment, including commodities.

Cocoa futures prices also closed lower in light trading because of poor macro-economic data and expectations that cocoa exports in Ivory Coast, the main cocoa producer, will resume in the near future.

The dollar scaled back gains against the euro, falling to a session low against the yen and gold hitting a record high after Standard & Poor's revised its U.S. rating outlook to negative, sparking risk aversion to risky assets, including commodities. Standard & Poor's confirms that the United States has a sovereign credit rating of "AAA/A-1+". [ID: nCN1752025]

"there is a widespread negative view of commodities, especially when the economic slowdown and U.S. growth will be disappointing," said Jonathan Kingsman, director of Swiss consulting firm Kingsman SA. "overall, the commodity hype is likely to cool down."

Intercontinental Exchange (ICE)-July Arabica coffee futures KCc2 gave up earlier gains, closing down 3.70 cents, or 1.3 percent, at $2.8740 a pound. London July Robusta coffee futures LRCc2 closed down $43, or 1.7%, at $2425 a tonne.

In the case of sugar futures, traders see more downside risks as global sugar supplies are expected to be adequate, with ICE- July raw sugar futures SBN1 key support at 21 cents a pound.

New York May raw sugar futures SBc1 fell 19 cents to 24.40 cents per pound, while benchmark July raw sugar futures SBN1 closed down 18 cents at 24.79 cents. London August sugar futures LSUc1 fell $10.70, or 1.7%, to $622.00 a tonne.

* * C ô te d'Ivoire gets attention * *

Ivory Coast, the main cocoa producer, was in the spotlight and President Alassane Ouattara said on Wednesday that everything was in place to resume cocoa exports soon and traders were waiting for news.

French container shipping group CMA CGM said on Monday that its first ship would arrive in C ô te d'Ivoire on April 19 after it resumed services to C ô te d'Ivoire.

ICE- July cocoa futures CCN1 fell $100, or 3.2%, to $3057 a tonne, while London July cocoa futures LCCN1 fell 48 pounds, or 2.4%, to £1931 a tonne. (end)