SOFTS-Cocoa slumps to two-month low, raw sugar also down

NEW YORK, 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 raw sugar also fell.

COCOA

* London cocoa LCCc2 ​settled down 112 pounds, or 2.2%, at 4,946 pounds per metric ton 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 fell 3.2% to $7,001 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 settled up 1.65 cent, or 0.5%, at $3.479 per lb, posting a timid recovery after losing 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.

* They added, however, that there was support from roaster buying when the market touched session lows.

* Robusta coffee LRCc2 gained 3.5% to $4,280 a ton with the market also regaining some ground after falling by 10% last week.

SUGAR

* Raw sugar SBc1 ​settled down 0.21 cents, or 1.4%, at 15.25 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, along with a reasonably good Brazilian crop.

* ​"The consistent high sugar mix means that although milling volume to date trails last season by around 5%, sugar production is now running only 2% behind last season," said Rabobank, referring to the high amount of cane Brazil mills are earmarking for sugar production.

* White sugar LSUc1 fell 1% to $451.00 a ton.