Softs: Cocoa climbs as El Nino poses threat to crops

Barry Callebaut AG

02/06/2026 14:25

Adds background, updates prices

    LONDON, June 2 (Reuters) - Cocoa prices rose sharply on Tuesday buoyed by concerns that an El Nino weather event could curb global production in the 2026/27 season and drive up prices.

COCOA
* London cocoa LCCc2 rose 6.45% to £3,134 a metric ton by 1400 GMT.
* The chief of Barry Callebaut BARN.S, one of the world's top cocoa processors, said on Tuesday that El Nino weather conditions could drive up cocoa bean prices by a few thousand pounds per metric ton.
* New York cocoa CCc1 gained 6.9% to $4,165 a ton.

COFFEE
* Arabica coffee KCc1 rose 0.1% to $2.6075 after setting a 1-1/2 year low of $2.5935.
* Dealers said the harvest in top producer Brazil was picking up pace with the weather expected to be mostly dry during the next couple of weeks.
* Honduras' coffee exports grew 9.9% year-on-year in May to 1.09 million 46-kilo bags, according to data released on Monday by the Honduran Coffee Institute (IHCAFE). 
* The market has been underpinned, however, by falling exchange stocks.
* Dealers noted that exchange stocks stood at 434,930 bags, as of June 1, down from 446,816 bags a week ago. At the same time last year stocks stood at 882,212 bags.
* Robusta coffee LRCc1 rose 1.4% to $3,485 a ton.

SUGAR
* Raw sugar SBc1 ​fell 0.3% to 14.41 cents per lb weighed by lower crude oil prices.
* Weaker energy prices are bearish for sugar as they often tempt cane mills to produce more sugar and less ethanol fuel.
* Sugarcane crushing in Brazil's key Center-South region reached 42.35 million metric tons in the first half of May, up 1.4% from the same period in 2025, according to Reuters calculations based on government data published last week.
* White sugar LSUc1 lost 1.4% to $443.60 a ton.
 

 (Reporting by Nigel Hunt; Editing by Diti Pujara)
 ((nigel.hunt@thomsonreuters.com; +44 (0) 7990 561421; Reuters Messaging: nigel.hunt.thomsonreuters.com@reuters.net))