SOFTS-Coffee slips after hitting multi-week highs as 'super El Niño' looms

Updates prices, recasts

- Coffee futures on ICE slipped on Thursday after hitting multi-week highs earlier in the session due to fears of a potentially very strong weather pattern, a "super El Niño", gathering pace.

Sugar futures fell, tracking weaker oil prices.

COFFEE

  • Arabica coffee KCc2 fell 1.6% to $2.6735 per lb at 1527 GMT, having hit its highest since mid-May at $2.7810.

  • Robusta coffee LRCc2 rose 0.4% to $3,636 a metric ton, having hit its highest since early March at $3,680.

  • El Niño is especially problematic for robusta as it typically brings high temperatures and reduced rains to Vietnam and Indonesia, which grow about 50% of the world's robusta.

  • In arabica, meanwhile, the pattern initially brings excess rains to top-grower Brazil. While these slow the harvest, they can only boost prices if they significantly damage crop quality or cause fungal disease.

  • Dealers noted that heavy Brazil rains are forecast to continue intermittently over the next week to 10 days.

SUGAR

  • Raw sugar SBc1 fell 1.9% to 13.59 cents per lb, having hit a near two-month low of 13.56 cents on Tuesday.

  • Energy price declines continue to pressure the market by tempting cane mills to produce less ethanol fuel and more sugar.

  • Also China, the world's largest sugar importer, shipped in 36.8% less sugar in May than a year ago, data showed.

  • Limiting losses in sugar however, are longer term fears El Niño will curb production.

  • White sugar LSUc1 dropped 1.5% to $445.30 a ton.


COCOA

  • London cocoa LCCc2 ​fell 1.8% to £3,104 a ton, having hit its highest since late May on Wednesday.

  • The market has been supported by indications the El Niño weather pattern may significantly crimp 2026/27 output in West Africa and in No. 3 producer Ecuador.

  • Dealers also noted that demand for the chocolate ingredient is showing some improvement.

  • New York cocoa CCc2 fell 3.1% to $4,105 a ton.