Raw Sugar Hits Four-Week Low, Coffee Rallies

Raw Sugar Prices Drop, Coffee Recovers

ICE raw sugar futures hit fresh four-week lows on Thursday, weighed down by signs of ample supplies in Brazil and the European Union, while coffee futures rallied.

Sugar Market Developments

Raw sugar was down 1.6% at 13.91 cents per lb, after hitting its lowest since late April at 13.86 cents. French sugar and ethanol maker Tereos expects 2026/27 earnings to fall further due to weak sugar markets and cost pressures. Germany's second-largest sugar refiner Nordzucker posted an annual operating loss and expects weak EU sugar markets to lead to further losses.

CEO Lars Gorissen stated, "The sugar sector is currently facing an extremely difficult market situation. Two very strong harvests in Europe caused a clear oversupply, putting massive pressure on prices." Additionally, the strong start to the harvest in top grower Brazil is weighing on prices. Sugar output in Brazil's key center-south sugar belt rose 109.48% year-on-year to 1.8 million metric tons in the second half of April, according to UNICA data.

Coffee Market Developments

Arabica coffee rose 1.3% to $2.7345 per lb, after losing 1.5% on Wednesday. A drop in coffee exports from No. 2 arabica grower Colombia is keeping market conditions tight for now. However, supplies are expected to grow as a bumper harvest in Brazil gets underway. Consultancy Datagro expects the global coffee market to have a surplus of 8.75 million bags in 2026/27. Robusta coffee rose 1.9% to $3,539 a ton.

Cocoa Market

London cocoa futures fell 1.5% to 3,084 pounds per ton, after hitting a nearly two-week high on Wednesday. New York cocoa fell 1% to $4,097 a ton.