SOFTS-Arabica coffee hovers near 4-month high, raw sugar gains for 3rd session

NEW YORK, Sept 10 (Reuters) - Arabica coffee futures rose on Wednesday, heading back towards the prior session's four-month high with the market still concerned about tariffs, low stocks and reduced exports from top grower Brazil.

Raw sugar rose for a third consecutive session.

COFFEE

Arabica coffee KCc2 settled up 5.1 cents, or 1.3%, at $3.869 per lb, having hit its highest since early May at $3.9300 on Tuesday.

Brazilian coffee exports to the United States fell 46% in August while sales to Latin American neighbours surged, coffee exporters group Cecafe said, even as industry leaders said re-exporting Brazilian beans via third countries was not an alternative for getting past U.S. import tariffs.

Overall, Brazil's coffee exports fell 17.5% from a year ago in August, with arabica exports down 11.2% and robusta exports 34.5% lower.

Dealers noted the 50% U.S. tariff on Brazil has prompted a raid on ICE-certified stocks > that fell to the lowest since May last year.

Robusta coffee LRCc2 rose 2.4% to $4,477 a metric ton.

SUGAR

Raw sugar SBc1 ​settled up 0.09 cent, or 0.6%, at 15.93 cents per lb, continuing its recovery since a two-month low of 15.38 hit on Monday.

Dealers noted improvement in ethanol prices in Brazil, and lower sugar production in Germany as helping underpin prices.

There were also reports of more fires at sugarcane fields in Brazil's main sugar belt due to excessive dryness. Those events, if widespread, could hurt next year's crop.

White sugar LSUc1 rose 1.4% to $489.90 a ton.

COCOA

London cocoa LCCc2 settled up 68 pounds, or 1.3%, at 5,170 pounds per ton, having ​​hit its lowest since July 21 at 4,980 on Tuesday.

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

"A recovery in global cocoa demand, albeit off multi-year lows, is unlikely (in the second half of 2025) until there is a major improvement in supply and available stocks," said JPMorgan analyst Tracey Allen.

She added that while supply-side improvements are expected in 2025/26 both in West Africa and Ecuador, she expects cocoa prices to average $6,000 a ton in the medium term, while the market finds balance.

New York cocoa CCc2 rose 1% to $7,468 a ton.