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SOFTS-Arabica coffee hits four-month high, sugar and cocoa ease

ReutersSep 12, 2025 6:38 PM

- Arabica coffee futures on ICE rose to a four-month high on Friday boosted by tight supplies in the U.S. following the imposition of a 50% tariff on shipments from Brazil.

COFFEE

* Arabica coffee KCc2 settled up 10.75 cents, or 2.8%, at $3.9685 per lb after climbing to a four-month high of $3.9855. Arabica gained 6.2% in the week.

* "The main drivers of bullish sentiment continue to be concerns that the Brazilian coffee harvest will be smaller than initially expected and the U.S. imposition of 50% tariffs on Brazilian exports, contributing to low stocks in the U.S.," BMI analyst said in a note.

* Brazil's coffee exports to the United States in August fell 46% from a year earlier after the Trump administration's 50% tariff on imports from Brazil.

* Robusta coffee LRCc2 rose 1.8% to $4,601 a metric ton.

SUGAR

* Raw sugar SBc1 ​​settled down 0.03 cents, or 0.2%, at 15.79 cents per lb, though the market posted a weekly gain of 1.5% after two successive weekly declines.

* Dealers said recent weakness in sugar prices could encourage Brazilian mills to consider decreasing the proportion of cane used to make the sweetener. Cane can also be used to produce bioethanol.

* Indonesia has halted issuance of raw sugar import permits for the rest of the year, Trade Minister Budi Santoso said on Friday, after sugarcane farmers complained about difficulties in competing with imports.

* White sugar LSUc1 fell 0.6% to $485.20 a ton, with the focus on Monday's expiry of the October contract.

* Dealers said about 220,000 tons of sugar were expected to be delivered against the contract.

* India, the world's second-biggest sugar producer, will have sufficient surplus stocks to allow exports in the season beginning on October 1, a government official said on Friday.

COCOA

* London cocoa LCCc2 settled down 90 pounds, or 1.7%, at 5,106 pounds per ton.

* New York cocoa CCc2 lost 1.4% to $7,420 a ton.

* Despite the negative Friday session, New York cocoa could test resistance at $7,747 a metric ton, a break above which could open the way towards a range of $7,867 to $8,063, said Reuters technical analyst Wang Tao.

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