SOFTS-Robusta coffee falls nearly 5% on ample supplies, cocoa up

NEW YORK, July 21 (Reuters) - Robusta coffee futures on ICE fell nearly 5% on Monday to hit a 16-month low with newly harvested beans from Brazil and Indonesia ensuring that supplies remain ample while cocoa regained some ground after recent weakness.

COFFEE

Robusta coffee LRCc2 settled down $161, or 4.8%, at $3,187 a metric ton.

Brazilian robusta growers are offering their recently-harvested lots at significant discounts compared to robusta from Vietnam, Archer Consulting said in a note.

Dealers noted the market's main focus remained on whether the U.S. would go ahead with the planned 50% tariff on imports on Brazilian coffee from August 1.

Brazil's finance minister said on Monday his country would not give up negotiating with the U.S. but acknowledged that a trade deal may fail to be reached by August 1.

About a third of U.S. coffee comes from Brazil and the tariffs, if they transpire, would all but halt the flow of Brazilian beans to the U.S., the world's top coffee drinker.

Arabica coffee KCc2 lost 3.8% to $2.9195 per lb.

COCOA

London cocoa LCCc2 settled up 145 pounds, or 2.9%, to 5,109 pounds per ton in a modest rebound after falling by around 4% last week on bearish second quarter grind data.

Dealers said second quarter grind from Asia, Europe and North America showed an overall decline of around 10%, reinforcing concerns that the rise in prices last year has curbed demand.

New York cocoa CCc1 rose 4.6% to $8,156 a ton.

Many cocoa trees in Ivory Coast's key growing regions are flowering, with some showing small pods in a promising sign for the October to March main crop, farmers said on Monday, adding though that more sunshine is needed to boost growth.

SUGAR

Raw sugar SBc1 settled down 0.45 cent, or 2.7%, at 16.37 cents per lb.

Dealers said the failure of the market to stay above the 17-cent level reached on Friday - which could have sent speculators to cover more of their shorts - led to a downward consolidation.

They noted early indications of a potential global surplus in the 2025/26 season with a strong monsoon boosting production in India and Thailand.

White sugar LSUc1 fell 2.8% at $474.20 a ton.