SOFTS-Cocoa rallies after better-than-expected data on demand

LONDON, April 17 (Reuters) - Cocoa futures traded on the ICE exchange rose on Thursday thanks to better-than-expected data on demand, and as fears U.S. trade tariffs could spark a global trade war ebbed slightly.

U.S. President Donald Trump touted "big progress" in tariff talks with Japan on Wednesday, but gave no details. Still, the dollar recovered versus the yen, making dollar-priced commodities such as cocoa cheaper for non-U.S. investors.

COCOA

London cocoa LCCc2 rose 5% to 6,136 pounds a metric ton at 1347 GMT, having gained 0.6% on Wednesday, while New York cocoa CCc2 climbed 4.9% to $8,401 a ton.

Europe's first-quarter cocoa grind, a measure of demand, fell 3.7% from a year earlier, the European Cocoa Association (ECA) said, while Asia's first-quarter cocoa grind fell 3.44%, according to the Cocoa Association of Asia (CAA).

Investors had expected falls of between 5% and 7%, so the numbers brought some measure of relief.

BMI, a unit of Fitch Solutions, said it was revising up its 2025 cocoa price forecast to $8,500 a ton from $7,600 as concerns over the 2024/25 harvest remain.

In news, companies including cocoa and coffee firms will need less paperwork to comply with the European Union's anti-deforestation law, as of December, when it kicks in with changes by the European Commission.

COFFEE

Arabica coffee KCc2 fell 0.9% to $3.7055 per lb, having gained 1.8% on Wednesday, while robusta coffee LRCc2 slid 2.1% to $5,264 a metric ton, having gained 0.7% on Wednesday.

Robusta prices in Vietnam rose this week as focus shifted to tight supplies after a temporary pause on U.S. tariffs.

"The market found support last week after a technical selloff and is in the process of determining whether the move to record-high prices in February was enough to stop demand," said broker ADMISI.

SUGAR

Raw sugar SBc1 rose 0.6% to 17.96 cents per lb, having hit a 2-1/2 year low this week at 17.51 cents, while white sugar LSUc1 dipped 0.6% to $500.50 a metric ton.

Dealers said sugar is under pressure from worries over weak demand and the risk of tariff-related recessions, as well as expectations that output from Thailand, India and perhaps even Brazil will rise, dealers said.