SOFTS-Cocoa slumps to two-month low, arabica coffee extends fall

LONDON, Sept 22 (Reuters) - Cocoa futures on ICE fell to two-month lows on Monday with weak demand seen leading to a global surplus in the upcoming 2025/26 season, while arabica coffee and sugar were also down.

COCOA

London cocoa LCCc2 lost 1.3% to 4,994 pounds a metric ton by 1439 GMT after setting a two-month low of 4,890 pounds.

Dealers said the prospect of a substantial global surplus in the upcoming 2025/26 season (October/September) driven partly by weak demand was keeping the market on the defensive.

They noted rains across the cocoa growing regions of Ivory Coast last week were expected to boost the outlook for the 2025/26 main crop in the world's top producer.

New York cocoa CCc2 was down 2% at $7,083 a ton after hitting a two-month low of $6,942.

Ecuador is on course to produce more than 650,000 metric tons of cocoa in the upcoming 2025/26 season and could surpass Ghana as the world's second largest grower of the chocolate ingredient, the chairman of the country's cocoa exporters association said.

COFFEE

Arabica coffee KCc2 fell 1.1% to $3.4195 per lb with the market extending its recent decline after falling 12% last week.

Dealers said the market had been pressured by funds' long liquidation against the backdrop of rains in Brazil which may aid the outlook for next year's crop.

Robusta coffee LRCc2 gained 1.7% to $4,205 a ton with the market regaining some ground after falling by 10% last week.

SUGAR

Raw sugar SBc1 fell 0.5% to 15.38 cents per lb, slipping back down towards last week's 2-1/2 month low of 15.16 cents.

Dealers said favourable cane crop prospects for Asian producers including India and Thailand have put the market on the defensive.

White sugar LSUc1 was down 0.8% at $452.10 a ton.