SOFTS-Cocoa hits new four-month low on improved supply prospects

NEW YORK, March 11 (Reuters) - Cocoa futures on the ICE exchange hit new four-month lows on Tuesday on improved weather prospects in top producer Ivory Coast and reports of increased surplus forecast for this season.

COCOA

London cocoa LCCc2 ​settled down 125 pounds, or 1.9%, to 6,406 pounds per metric ton, having hit its lowest since early November at 6,291.

Above-average rains mixed with long sunny spells last week across most of Ivory Coast's cocoa growing regions are expected to improve growing conditions and strengthen the development of the April-to-September mid-crop.

"Good weather should promote late mid-crop and new crop production. Estimates for Ivory Coast's mid-crop are currently quite wide, between 300,000 and 400,000 metric tons," said broker StoneX.

It also reported that consultants TRS by Expana have increased their 2024/25 surplus forecast by 32,000 tons to 77,000 tons, due to an expected drop in the cocoa grind, a measure of demand.

"TRS' forecast for the 2025/26 season is (for) a 166,000-ton surplus," noted StoneX.

New York cocoa CCc2 fell 1.5% to $8,302 a ton.

SUGAR

Raw sugar futures SBc1 slid 1% to 18.67 cents per lb.

Dealers said concerns over dry weather in top producer Brazil have ameliorated of late, and worries over a late start to the 2025/26 crop have been put to rest as two mills have started harvesting early.

"All told, the predominant sentiment remains one of prices trending lower to incentivize demand and constrict supply," said broker and consultant Michael J Nugent in a report.

The USDA cut again its projection for sugar consumption in the U.S. on Tuesday.

White sugar LSUc1 fell 1.2% to $524.50 a ton.

COFFEE

Arabica coffee KCc2 settled up 9.75 cents, or 2.5%, at $3.9375 per lb.

Dealers said dry conditions in top producer Brazil remain a concern, but these have been priced to an extent and fears are now emerging over the impact of high prices on demand.

Dealers said a big concern at last week's National Coffee Association conference in Houston was "how much demand will fall in 2025".

Robusta coffee LRCc2 rose 3.3% at $5,552 a ton.