Softs: Arabica coffee plumbs fresh 1-1/2-year low as surplus supplies loom

Barry Callebaut AG

03/06/2026 17:07

Recasts paragraph 1 and headline, updates prices, adds details

    LONDON, June 3 (Reuters) - Arabica coffee futures on ICE plumbed fresh 1-1/2-year lows on Wednesday, with dealers focused on the prospect of surplus supplies.
     
COFFEE
* Arabica coffee KCc1 fell 1.3% to $2.5595 per lb​ at 1552 GMT,​ after hitting its lowest since November 2024 at $2.5345.
* Coffee production in Brazil in the 2026/27 season that starts in July should hit 71.9 million 60-kg bags, up from 63 million bags in the previous season, according to the U.S. Department of Agriculture's attache in Brasilia.
* Cooxupe, Brazil's largest coffee co-operative, said its farmers have harvested 8.9% of their 2026 crop as of May 29, above the 6.9% reported in the year-ago period.

     * A large harvest in top producer Brazil should contribute to a wide global surplus of 9.5 million bags in 2026/27, up from a 1.2 million bag surplus in 2025/26, Rabobank said.
* ICE-certified arabica stocks could, however, remain tight for months before possibly rising by the end of the year, keeping prices volatile, the bank said.
* Robusta coffee LRCc1 fell 2% to $3,392 a ton.
* Top robusta grower Vietnam exported 928,000 metric tons of coffee in the first five months of 2026, up around 8% from the same period a year earlier, government data showed.
        
COCOA
* London cocoa LCCc2 fell 1.3% to £3,067 per metric ton, having closed up 5.6% on Tuesday amid supply concerns linked to El Nino.
* Top grower Ivory Coast has started to slow sales due to concerns about the impact of a looming El Nino weather pattern on output, four sources told Reuters.
* The chief of Barry Callebaut BARN.S, the world's top cocoa processor and chocolate producer, said El Nino weather conditions could drive up cocoa bean prices by a few thousand pounds per metric ton.
* New York cocoa CCc1 fell 0.9% to $4,073 a ton, having gained 5.5% on Tuesday.
         
SUGAR
* Raw sugar SBc1 ​​fell 0.8% to 14.26 cents per lb, having settled down 0.5% on Tuesday.
* Sugar production in Brazil's key center-south region is expected to have fallen 14% in the first half of May compared with a year earlier, while cane and corn-based ethanol output is projected up 19.7%, an S&P Global Energy survey showed. 
* A new wave of biofuel innovation is sweeping top sugar grower Brazil, meaning sugarcane or corn-based ethanol fuel could before long be complemented by fuels made from grains, tubers and other exotic feedstocks.
* White sugar LSUc1 edged up 0.2% to $446.90 a ton. 

(Reporting by May Angel; Editing by Jonathan Ananda)
((may.angel@thomsonreuters.com; x.com/ReutersAngelM; linkedin.com/in/may-angel-03b69a41/;))