Trading volumes for sugar, coffee and cocoa sharply up in 2023 - ICE

By Marcelo Teixeira

NEW YORK, Jan 4 (Reuters) - The amount of trading in futures of sugar, coffee and cocoa at the Intercontinental Exchange (ICE) increased sharply in 2023 as companies sought to cover rising risks related to the global supply chain, the exchange said in a report on Thursday.

ICE said that the average daily volume (ADV) traded in sugar contracts in 2023 rose 21% from the previous year and was a record.

It said ADV for cocoa contracts in 2023 increased 14% from 2022, while ADV for coffee futures jumped 9% last year.

The exchange said in the report that the results reflect the role derivative markets play covering risks "in the face of ever more complex supply chain dynamics."

Investment flow from financial players to agricultural commodities increased as well, as they sought to diversify allocation looking for higher returns.

Prices for agricultural commodities have been very volatile in the last three years amid disruptions to transportation and demand due to the global COVID pandemic and armed conflicts, as well as a result of weather developments that hurt agricultural production.

London cocoa futures reached the highest ever price last year, while robusta coffee hit the highest price in at least 15 years and raw sugar rose to a 12-year peak.

(Reporting by Marcelo Teixeira;Editing by Elaine Hardcastle)