Softs: Cocoa climbs as El Nino poses threat to crops

Barry Callebaut AG

02/06/2026 20:31

Adds comments and closing prices

    NEW YORK, 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 ​​settled up £163, or 5.5%, to £3,127  per metric ton.
* 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, adding that the country sold about 1 million metric tons of cocoa in export contracts for the 2026-27 main crop so far.
* 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 5.5% to $4,108 a ton.

COFFEE

    * Arabica coffee KCc1 settled down 1.4 cents, or 0.5%, at $2.592 per lb​​ after setting a 1-1/2-year low of $2.5815.
  
* 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 0.7% to $3,462 a ton.

SUGAR
* Raw sugar SBc1 ​​settled down 0.07 cent, or 0.5%, at 14.38 cents per lb, as oil prices remained below $100 with the market still hoping for a deal to end the war.
* Weaker energy prices are bearish for sugar as they often tempt cane mills to produce more sugar and less ethanol fuel.
* Brazil's harvest continues at a fast pace.
* Sugarcane crushing in the 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 0.9% to $445.80 a ton. 

 (Reporting by Nigel Hunt and Marcelo Teixeira; Editing by Diti Pujara and Shreya Biswas)
 ((marcelo.teixeira@tr.com; +1 332 220 8062; https://x.com/tx_marcelo;))