Robusta coffee recovers after hitting 16-month lows, cocoa also gains ground
Cocoa also regained some ground.
Coffee
Robusta coffee was up 2.8% at $3,278 a metric ton at 1146 GMT, having hit its lowest since last March at $3,166.
The harvest in key producers Brazil and Indonesia, the world's second and third largest exporters of the bean, is progressing well and there are no weather risks on the horizon, dealers said.
The market remained focused, however, on whether the U.S. will go ahead on August 1 with planned 50% tariffs on all imports from Brazil, the world's top coffee grower and supplier of a third of U.S. coffee.
Brazil's finance minister on Monday acknowledged a trade deal may fail to be reached by August 1, while U.S. Treasury Secretary Scott Bessent emphasized the administration is prioritizing the quality of trade deals over speed.
Dealers said the tariffs, while initially bullish as they create demand for certified stocks, are likely bearish long-term for world coffee prices as they would hurt demand in top coffee drinker the U.S. by raising prices there.
Arabica coffee was little changed at $2.8480 per lb.
Robusta coffee falls on ample supplies, cocoa edges up
Cocoa
London cocoa rose 1.5% to 5,183 pounds per ton, extending its rebound from an around 4% fall last week.
Shares in Lindt & Spruengli dropped around 6% after the Swiss chocolate maker reported lower than expected first-half earnings as steep price hikes struck its overall sales volumes.
The news reinforced concerns over flailing demand for the chocolate ingredient in response to historically high prices.
Limiting losses, however, dealers noted exchange stocks in London have fallen by more than 7,000 tons over the past week to just over 57,000 tons, and that speculators are reducing their long positions or bets on price gains.
New York cocoa rose 0.6% to $7,467 a ton.
Sugar
Raw sugar fell 0.9% to 16.23 cents per lb.
No trading companies were believed to have submitted price offers in an international tender to buy 50,000 metric tons of sugar from Pakistan which closed on Tuesday, European traders said in initial assessments.
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