London cocoa futures on ICE reached a record high, rising 0.8% to £3,741 per metric ton in March, following stronger-than-expected grind data. The North American fourth-quarter cocoa grind showed a mere 2.95% year-on-year decline, contrary to the anticipated 6-10% drop, signaling more resilient demand despite recent price increases. European and Asian fourth-quarter grinds also saw year-on-year declines. Poor crops in West Africa have contributed to the surge in cocoa prices, with persistent weather-related supply concerns. BMI notes that global prices are underpinned by these concerns, predicting a third consecutive global deficit in the current 2023/24 season.
Meanwhile, March New York cocoa rose 1.5% to $4,526 per ton. In the sugar market, March raw sugar gained 0.4% to 23.13 cents per lb, hitting a one-month peak of 23.28 cents. Concerns about dry weather in Brazil, a top producer, along with poor crops in India and Thailand, supported the sugar market. March white sugar was up 0.6% at $655.20 per ton.
In the coffee sector, March robusta coffee rose 0.65% to $3,083 per ton, with tight supplies due to strong demand and disruptions in supplies from top producer Vietnam. March arabica coffee increased 2% to $1.8355 per lb.
