SOFTS-Coffee gains as U.S. tensions with Brazil escalate, tariffs loom

NEW YORK, Aug 5 (Reuters) - Coffee futures on ICE rose on Tuesday as tensions between the United States and Brazil escalated, making it increasingly unlikely the U.S. will exclude coffee from its 50% tariffs on goods from Brazil, which take effect on Wednesday.

Brazil's Supreme Court put former President Jair Bolsonaro under house arrest on Monday. U.S. President Donald Trump has called the case a "witch hunt" and said it is grounds for the steep tariffs on Brazilian goods.

COFFEE

* Arabica coffee futures KCc1 settled up 10.15 cents, or 3.5%, at $2.987 per lb​, having gained 1.5% on Monday.

* Brazil said it will have no difficulty redirecting beef and coffee exports in the wake of U.S. tariffs, while China has approved 183 new Brazilian coffee exporting companies.

* Dealers expressed doubts China can make up for the loss of Brazilian sales to the U.S. The world's largest coffee consumer gets about a third of its beans from top grower Brazil.

* The U.S. tariffs are expected to drive up coffee prices in the short term as traders scramble to redirect trade flows and get their hands on stocks.

* KBC Securities upgraded Dutch coffee and tea company JDE Peets JDEP.AS to "accumulate" from "hold", noting that first-half volumes rose 1% despite a 21.5% price hike, confirming coffee's resilience as a staple product.

* Robusta coffee LRCc2 rose 0.6% to $3,359 a metric ton.

COCOA

* London cocoa futures LCCc2 ​​settled up 161 pounds, or 3.1%, at 5,428 pounds per ton, after hitting a one-week low on Monday.

* Cocoa arrivals at ports in top producer Ivory Coast were down 2% between October 1 and August 3 versus the same period last season, exporters estimated.

* "Production in Ivory Coast has stalled. This season once had a sizeable gap on last season, now it lags," said broker StoneX.

* It also noted a recent report that cold weather and scant rains are worrying farmers in Ivory Coast who grow the chocolate ingredient.

* Ivory Coast has meanwhile vowed to find new cocoa buyers if top chocolate consumer the U.S. imposes tariffs of 15% on its beans this Thursday.

* New York cocoa futures CCc1 rose 3.2% to $8,363 a ton.

SUGAR

* Raw sugar SBc1 ​​​settled down 0.16 cent, or 1%, at 16.09 cents per lb, having hit a one-month low of 15.92 cents.

* Dealers said falling oil prices are pressuring sugar.

* White sugar LSUc1 fell 1.1% to $463.60 a ton, after hitting a one-month low of $460.60.