SOFTS-Raw sugar hits 2-1/2-month low, arabica edges up

LONDON, Sept 18 (Reuters) - Raw sugar futures on ICE fell to a 2-1/2-month low on Thursday, weighed by ample supplies, while arabica coffee regained some ground after the prior session's steep losses.

SUGAR

* Raw sugar SBc1 fell 1.7% to 15.28 cents per lb by 1423 GMT after hitting a 2-1/2-month low of 15.19 cents.

* Dealers said a report by Brazil sugar industry group UNICA covering the second half of August showed mills in Center-South Brazil continued to favour using cane to produce sugar rather than ethanol.

* "The latest UNICA report again pointed to a record sugar mix for the period, alleviating – for now, at least – earlier concerns that Brazilian sugar mills could alter their product mix due to the strength of domestic ethanol prices relative to international sugar prices," Rabobank said in a note.

* The market has also been weighed by favourable prospects for sugar producers in Asia such as India and Thailand.

* "Market sentiment retains its distinctive bearish tone, with speculators accumulating their largest net short position in (raw sugar) contracts since the end of 2019," Rabobank added.

* White sugar LSUc1 was down 0.9% at $454.90 a metric ton.

COFFEE

* Arabica coffee KCc2 rose 0.85% to $3.7880 per lb after falling by 8.2% on Wednesday.

* Dealers said a wave of fund long liquidation had helped to fuel the sharp fall in prices on Wednesday with the decline gathering momentum as key support levels were breached.

* The market remained underpinned, however, by tight supplies in the United States following the imposition of a 50% tariff on shipments from Brazil.

* Robusta coffee LRCc2 fell 0.5% to $4,429 a ton.

COCOA

* London cocoa LCCc2 fell 1.1% to 5,035 pounds per ton.

* Dealers said the market was subdued with many participants away from their desks attending a cocoa conference in Malta.

* New York cocoa CCc2 was down 1.3 to $7,225 a ton.