Arabica coffee futures hit lowest in a month

(Recasts, updates prices, adds details)

LONDON, March 27 (Reuters) – Arabica coffee futures traded on the ICE exchange hit their lowest in a month on Thursday, as concerns grow that consumption might fall in response to high prices.

* Arabica coffee fell 2.9% to $3.8070 per lb at 1548 GMT​​, having hit its lowest since late February at $3.7560.

* Broker and consultant Michael J Nugent said participants remain “laser-focused” on Brazil’s rains – critical in shaping the upcoming crop and rebuilding depleted global stockpiles.

* He added, however: “We are increasingly concerned record-high prices (will) collide with weakening consumer confidence.”

* Roasters like Nestle and Douwe Egberts maker JDE Peet’s are currently in talks with retailers about passing on costs from a near doubling of arabica prices over the past year.

* Reg Watson, director of equity research at Dutch Bank ING, believes prices will rise around 15%-25% on the shop floor and that in some markets consumers may feel the hike in one shot.

* Showers and thunderstorms are expected to continue periodically through the next 10 days in Brazil’s coffee areas, but the rainfall will remain mostly light.

* Robusta coffee fell 1.6% to $5,357 a metric ton, having hit their lowest in a month at $5,280.

* Supply of robusta beans tightened in top robusta producer Vietnam and No. 2 exporter Indonesia this week, with Vietnamese farmers refraining from selling the bean on hopes of higher profit.

* Raw sugar ​​fell 1.6% to 19.06 cents per lb.

* Sugar cane crushing in Brazil’s center-south region during the first half of March fell almost 18% to 1.83 million metric tons versus a year earlier, while sugar production was down 19% to 52,000 tons, industry group Unica said.

* Brazil’s Sao Martinho said a fire at its Iracema plant has led to a boiler being shut down, potentially resulting in daily ethanol and sugar production at the site falling by up to 30% for the 2025-2026 harvest.

* White sugar fell 0.8% to $536.20 a ton.

* London cocoa fell 0.9% to 6,201 a ton, having settled 1.1% higher on Wednesday.

* Cocoa is deriving support from an expected significant decline in the mid-crop in top producer Ivory Coast, though concerns over weakening demand in response to high prices are capping gains.

* Ultimately, the market is awaiting fresh news to trade on, dealers said.

* New York cocoa slipped 0.2% to $8,033 a ton.

(Reporting by May Angel; Editing by Krishna Chandra Eluri)