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.