SOFTS-Coffee prices fall sharply on long liquidation, sugar also down

NEW YORK, Sept 17 (Reuters) - Coffee futures on ICE fell sharply on Wednesday amid fund selling, with arabica retreating from the prior session's near seven-month high, while sugar prices were also lower.

COFFEE

* Arabica coffee KCc2 settled down 33.7 cents, or 8.2%, at $3.7565 per lb, retreating from a near seven-month high of $4.24 set on Tuesday.

* "I don't think I ever saw a 30 plus cent fall", said a U.S.-based broker, adding that high frequency trading probably exacerbated the fall.

* Coffee Trading Academy (CTA) analyst Ryan Delany said the market fell after failing to break resistance around the $4.20 level.

* "This resistance was tested and held, triggering a hefty 30 cent pullback in the last two sessions," he said.

* The run-up has been driven by fund buying against the backdrop of tight supplies in the United States following the imposition of a 50% tariff on shipments from Brazil.

* Traders also said the increase by ICE on margin requirements for arabica coffee contracts on Monday drove liquidation by funds that are mostly long.

* Robusta coffee LRCc2 lost 6.9% to $4,450 a metric ton.

SUGAR

* Raw sugar SBc1 ​settled down 0.36 cent, or 2.3%, at 15.54 cents per lb.

* Dealers noted sugar production in Center-South Brazil during the second half of August was broadly in line with expectations at 3.872 million metric tons.

* A survey of 11 analysts published by S&P Global Commodity Insights had a consensus for sugar production of 3.8 million.

* Dealers said the low price level could lead some mills in Brazil to change their production mix towards more ethanol and less sugar going forward.

* White sugar LSUc1 fell 1.4% at $459.10 a ton.

COCOA

* London cocoa LCCc2 ​was little changed at 5,089 pounds per ton.

* Dealers said the market was focussed on the development of main crops in West Africa with the 2025/26 season due to start next month with concerns about diseases such as black pod continuing to underpin prices.

* The world could lose a third of its cocoa supply, or 1.5 million tons, over the next 15 years if no action is taken to tackle climate change and disease, an industry executive said on Wednesday.

* New York cocoa CCc2 gained 0.4% to $7,319 a ton.