Reuters: Coffee Prices Rise After Dropping to Two-Month Lows

Reuters reported that ICE coffee futures rose on Tuesday after earlier hitting their lowest levels in two months, amid concerns that historically high prices could dampen demand. Cocoa and sugar futures also saw notable gains.

According to the agency, Arabica coffee contracts gained 9.3 cents, or 2.4%, to settle at $3.8905 per pound, after reaching a low of $3.7225 earlier in the session—the weakest level since early February. Broker and market consultant Michael J. Nugent said traders are closely watching how consumers react to higher retail prices, especially as roasters run through their stockpiles of cheaper beans.

Market participants remain concerned about the upcoming harvest in Brazil, the world’s largest coffee producer. Both the Cooxupé cooperative and broker Marex expect output to remain below average, similar to last year’s sub-par harvest. Dealers also noted that potential tariffs from the Trump administration could push prices higher.

Robusta coffee futures rose 2.1% to $5,406 per metric ton.

In the sugar market, raw sugar climbed 2.6% to settle at 19.35 cents per pound, rebounding after hitting a nearly three-week low of 18.72 cents on Monday. Traders said drier weather conditions are returning to Brazil, potentially affecting the final development of the new cane crop. Meanwhile, India—the world’s second-largest sugar producer—has produced 24.8 million tons so far in the 2024–2025 season, according to an industry body.

White sugar rose 2.1% to $545.90 per ton.

As for cocoa, London cocoa futures rose by £90, or 1.5%, to close at £6,264 per ton, following a 1.1% decline on Monday. The market is being driven by concerns over the mid-crop in top producer Ivory Coast, although cocoa arrivals at ports remain 11% higher than the same period last year. New York cocoa surged 3.5% to $8,177 per ton.