SOFTS-Arabica coffee slips from four-month highs while cocoa gains

NEW YORK, Sept 11 (Reuters) - Arabica coffee futures on ICE slipped on Thursday, with the market consolidating after hitting four-month highs this week, while cocoa closed higher.

COFFEE

Arabica coffee KCc2 settled down 0.8 cent, or 0.2%, at $3.861 per lb, having hit its highest since early May at $3.9300 on Tuesday.

"Coffee prices continue to rally, albeit at a slower rate, driven by U.S. tariff-induced market tightness, declining certified stocks, a downward revision in external forecasts of the 2025 Brazilian arabica harvest and fund buying," Rabobank said.

It added, however, that the outlook for the 2026/27 arabica crop in top grower Brazil is promising and that this could have a significant impact on prices.

A transition from El Niño-Southern Oscillation, ENSO, neutral to La Niña is likely in the next couple of months, with a 71% chance of La Niña during October to December.

U.S. consumer prices increased the most in seven months in August, with tariffs boosting the price of coffee.

Dealers noted that the question of whether U.S. President Donald Trump overstepped his authority in enacting tariffs will be put before the Supreme Court in November.

Robusta coffee LRCc2 rose 1% to $4,521 a metric ton.

Traders in top robusta producer Vietnam are upbeat about prospects for the coming crop, citing benign weather conditions, but the harvest in third-largest robusta producer Indonesia is being hampered by rain.

COCOA

London cocoa LCCc2 ​settled up 26 pounds, or 0.5%, to 5,196 pounds per ton, having touched its lowest since July 21 at 4,980 pounds on Tuesday.

Dealers said the market may have over-sold on the weak demand theme and could be somewhat concerned about the weather, especially with reports of black pod disease in West Africa.

New York cocoa CCc2 rose 0.8% to $7,528 a ton.

SUGAR

Raw sugar SBc1 ​​settled down 0.11 cent, or 0.7%, at 15.82 cents per lb, still some way off a two-month low of 15.38 cents hit on Monday.

White sugar LSUc1 fell 0.3% to $488.20 a ton.

India will consider allowing sugar exports only after ensuring that output from the 2025/26 season fulfills local consumption and meets the requirement for ethanol production, Food Secretary Sanjeev Chopra said.