Cocoa spikes in New York amid concerns about El Niño in Africa
Cocoa futures registered strong gains in this Tuesday's session (02) on the New York Stock Exchange. The contracts were driven by an expectation that El Niño will impact the harvest in West Africa.
The contract for delivery in July closed with an appreciation of 5.47% and priced at US$4,108 per ton.
According to information from Barchart, the market follows weather conditions in the main producing regions.
"The formation of an El Niño weather phenomenon could lead to hotter, drier conditions in West Africa, potentially harming cocoa production in the region," Barchart reported.
NOAA (US National Oceanic and Atmospheric Administration) estimates an 82% probability that El Niño conditions will emerge between now and July and persist through the end of the year, with a 67% chance of a "Super El Niño."
Orange juice
The futures contract for orange juice for delivery in July ended the session with an increase of 6.67%, with the contract closing at US$ 1,641.00 per ton.
Coffee
Climatic conditions in Brazilian crops put negative pressure on Arabica coffee prices on the New York Stock Exchange.
The contract for delivery in July ended the day with a drop of 0.54% and is priced at US$2,592 per pound.
Barchart pointed out that arabica futures prices have fallen to the lowest in a year and a half.
"Weather forecasts indicate drier conditions this week in Brazil's coffee growing regions, which would allow the harvest to resume after last week's delay due to heavy rains", highlighted Barchat.
Sugar
In the case of sugar, futures prices ended the session with falls on the New York Stock Exchange. The contract for delivery in July registered a decline of 0.48% and closed at US$ 14.38 per pound.
Barchart pointed out that sugar prices are falling this trading session amid signs of abundant global supply.
According to UNICA (Union of Sugarcane and Bioenergy Industry), sugar production in the first half of April reached 1.80 million tons. In the accumulated harvest until May 1st, the production of the sweetener totaled 2.47 million tons.
The data also shows a greater use of sugarcane for ethanol production. In the last fifteen days, 59.66% of the raw material processed was directed to biofuel, a percentage higher than the 54.31% recorded in the same period of the previous harvest.
As a result, the accumulated harvest mix reached 61.84% focused on ethanol, compared to 54.77% observed in the 2025/2026 cycle, reinforcing the plants' strategy of prioritizing the production of renewable fuel.
Cotton
The cotton futures contract due in July closed the session up 0.08%, quoted at US$76.15 per pound.
According to data from TradingView, prices advanced and approached the highest level of the last two weeks, supported by a movement of technical recovery and the oil scenario still at high levels.
The market is also reflecting India's decision to temporarily suspend the 11% import tariff on cotton. The measure, valid until October 30, seeks to expand the supply of better quality fibers for the country's textile industry.
The expectation is that the flexibility of imports will stimulate purchases in the international market and strengthen demand, at a time of heated consumption of yarns and textile products on a global scale.
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Source: CNN