SOFTS-Raw sugar near five-year low on growing supplies, weight-loss drug worries

Reuters
Oct 28, 2025
SOFTS-Raw sugar near five-year low on growing supplies, weight-loss drug worries

Adds comments and closing prices

NEW YORK, Oct 27 (Reuters) - Raw sugar futures on the ICE exchange hit their lowest level in nearly five years on Monday, as the market buckled under pressure from growing supplies and worries that weight-loss drugs are curbing demand.

SUGAR

* Raw sugar SBc1 ​​settled down 0.51 cent, or 3.4%, at 14.46 cents per lb, having hit its lowest since December 2020 at 14.34.

* "No significant production threats have emerged this year, and long-term demand expectations are weighed down by the success of weight-loss drugs," said brokers ADM Investor Services.

* Also knocking prices, respected Brazil-based consultancy Datagro last week forecast a global sugar surplus of 1.98 million tons in 2025/26, versus a 5 million ton deficit previously.

* Ample rains are expected in the next 10 days in Brazil, which would boost prospects for 2026 sugarcane production.

* White sugar LSUc1 fell 2.1% to $422.20 a metric ton, having hit its lowest since July 2021 at $415.20.

COFFEE

* Arabica coffee KCc1 settled down 12.9 cents, or 3.2%, at $3.901 per lb.

* Brazil's President Luiz Inacio Lula da Silva said U.S. President Donald Trump had "guaranteed" the two countries would reach a trade deal.

* The U.S. slapped 50% tariffs on Brazilian imports earlier this year and any move to cut duties on the world's top coffee producer would be seen as bearish.

* "This may prove to be the first genuine sign of progress in the tariff and trade confrontation that has roiled markets," said broker and consultant Michael J Nugent.

* U.S. beverage company Keurig Dr Pepper KDP.O reported a 4% decline in coffee sales volumes in the third quarter amid a 5.5% price increase.

* Robusta coffee LRCc2 fell 2.3% to $4,450 a ton.

* Trump said coffee is among products included in a trade deal with Vietnam, which would exempt it from a 20% headline tariff.

COCOA

* London cocoa LCCc2 settled down 164 pounds, or 3.6%, at 4,397 pounds per ton, having gained 10% last week.

* Former Ivory Coast commerce minister Jean-Louis Billon conceded defeat to incumbent Alassane Ouattara in the presidential election at the world's No. 1 cocoa producer.

* Cocoa arrivals at ports in Ivory Coast reached 214,000 tons by October 26 since the season start on October 1, down 24.9% from the same period last season.

* New York cocoa CCc1 fell 2.2% to $6,182 a ton.

(Reporting by May Angel and Marcelo Teixeira; Editing by Shilpi Majumdar)

((marcelo.teixeira@tr.com; +1 332 220 8062; Reuters Messaging: marcelo.teixeira.thomsonreuters.com@reuters.net - https://x.com/tx_marcelo))

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