SOFTS-Arabica coffee hits 4-month high, then recedes; sugar up

NEW YORK, Sept 8 (Reuters) - Arabica coffee futures hit a four-month high on ICE exchange on Tuesday, before losing strength and ending down, while cocoa and sugar closed higher.

COFFEE

* Arabica coffee KCc2 settled down 3.05 cents, or 0.8%, at $3.818 per lb, having earlier hit its highest since early May at $3.89300.

* Forecaster Vaisala said there will be dry conditions in Brazil over the next 10 days and that "unfavourable soil moisture and minimal rains will not support flowering."

* Dealers, however, noted that there is still time for rains to spur the key flowering phase that is key to the 2026 crop.

* They also said the U.S. 50% tariff on Brazil, a shortage of shipping containers and fund flows into soft commodities are also boosting arabica.

* Prices could correct lower, however, if the U.S. Supreme Court upholds last month's federal appeals court ruling that Trump overstepped his authority in enacting the tariffs.

* Robusta coffee LRCc2 fell 1.3% to $4,371 a metric ton.

* Dealers said coffee flows out of Indonesia have increased sharply, while the drawdown in ICE robusta stocks has started to abate.

COCOA

* London cocoa LCCc2 rose 1.3% to 5,102 pounds per ton, having ​​hit its lowest since July 21 at $4,980.

* Cocoa is under pressure as demand is weak amid historically high prices, while a surplus is expected next season.

* Dealers noted, however, there are reports that pod counts in top growers Ivory Coast and Ghana are below the 10-year average.

* They added that some experts also assess black pod disease levels in Ivory Coast are above average.

* Elsewhere, President Trump signed an order late last week offering some tariff exemptions on tropical products to countries that strike trade deals with the U.S.

* Dealers said the market is waiting to see if exemptions will spur U.S. demand for cocoa and cocoa products from key processors Indonesia and Malaysia, which clinched trade deals with the U.S. in July.

* New York cocoa CCc2 rose 2.2% to $7,395 a ton.

SUGAR

* Raw sugar SBc1 ​​rose 1.3% to 15.84 cents per lb​, having hit a two-month low of 15.38 on Monday.

* Dealers noted improvement on ethanol prices in Brazil, which could lead to changes on the sugar/ethanol production mix by the mills.

* White sugar LSUc1 rose 0.8% to $483.30 a ton.