Arabica coffee futures on ICE hit their lowest levels in over two years due to abundant supplies stemming from a large harvest in Brazil. The downward trend is compounded by positive forecasts for the next year's crop in the world's top coffee-producing country. The March arabica coffee futures dropped significantly, reflecting a broader market struggle. Raw sugar futures saw a slight increase, while cocoa prices remained mostly unchanged. Notably, robusta coffee futures also declined as Vietnam's harvest progressed, even as sellers tried to firm up differentials in Europe. In the sugar market, March raw sugar futures experienced a modest rise, with future movements likely influenced by data from Brazil's key production region. Cocoa futures showed minor gains, driven by technical factors and a tightening supply outlook. Additionally, the global markets reflected mixed sentiments with European shares dipping, and the euro gaining strength against the dollar and yen amid hopes for Greek financial stability.
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