SOFTS-Coffee rallies on tight stocks, raw sugar hits 2-1/2 year lows

NEW YORK, April 15 (Reuters) - Coffee prices rose on Tuesday as investor focus returned to extremely tight stocks and relief in wider markets after U.S. President Donald Trump's latest changes in tariff policy , while raw sugar hit the lowest price in more than two years.

Investors remain concerned, however, that a global trade war could weaken economic growth.

COFFEE

Arabica coffee futures KCc2 traded on the ICE exchange settled up 8.65 cents, or 2.4%, at $3.6715 per lb, having lost 2.7% last week. Robusta coffee futures LRCc2 rose 1.9% to $5,340 a metric ton, having declined by 1.5% last week.

Consultancy Safras & Mercado said on Tuesday that Brazil's production could be a bit bigger than expected in 2025. It, however, estimates farmers have sold only 14% of the new crop versus a 25% long-term average for the period, citing uncertainty over production prospects.

A dealer said he expects arabica to recover to a range of $3.60 to $3.80 per lb this week, given supply jitters and tight stocks.

COCOA

London cocoa futures LCCc2 settled down 168 pounds, or 2.8%, to 5,805 pounds per ton. New York cocoa CCc2 fell 2.9% to $7,926 a ton.

Cocoa investors continue to fear a downturn in demand for the chocolate ingredient, with first-quarter cocoa grind data - a measure of demand - likely to show steep falls of 5% to 7%, dealers said.

Brazil cocoa grind fell 13% in the first quarter.

Most areas of Ivory Coast, Cameroon and Nigeria are expected to receive beneficial rain over the next week to 10 days.

SUGAR

Raw sugar SBc1 settled down 0.35 cent, or 2%, at 17.52 cents per lb, having hit a 2-1/2 year low of 17.51, while white sugar LSUc1 fell 2.7% at $513.10 a ton.

"Uncertain demand driven by an uncertain global economic outlook remains a concern," said broker ADMISI.

Sugar production in top producer Brazil's centre-south region was nearly 10% higher than a year earlier in the second half of March as mills allocated more cane to sugar production.

Elsewhere, France's farm ministry estimated the sugar beet area for this year's harvest at 391,000 hectares, down from 412,000 hectares in 2024 and 2.9% below the five-year average.