SOFTS-Arabica coffee extends rebound on falling stocks

NEW YORK, Sept 26 (Reuters) - Arabica coffee futures on ICE extended this week's rebound on Friday, boosted by declining exchange stocks, while cocoa prices slumped to two-month lows.

COFFEE

Arabica coffee KCc2 settled up 7.45 cents, or 2.1%, at $3.589 per lb, posting a weekly gain of 3.6%. The price had fallen by 12% the previous week.

The market has regained some ground after a recent decline sparked by an improving outlook for next year's crop in Brazil following rains.

"Prices have rebounded, spurred by expectations of tighter US ICE-certified supplies following the implementation of a 50% tariff by the U.S. on Brazilian imports," analyst BMI said in a note on Friday.

Exchange-certified stocks stood at 579,961 bags as of September 25, down 21,756 bags from a day earlier. A month earlier they stood at 729,934 bags.

The market is also awaiting a planned meeting next week between U.S. President Donald Trump and Brazilian President Luiz Inacio Lula da Silva.

Brazilian coffee exporters group Cecafe said sales to the U.S. will continue to fall without changes on the tariff.

Robusta coffee LRCc2 rose 2.4% to $4,182 a metric ton.

COCOA

London cocoa LCCc2 ​​settled down 43 pounds, or 0.9%, at 4,845 pounds per ton after hitting a two-month low of 4,838 pounds. The contract fell 4% in the week.

Dealers said concerns about weak demand continued to weigh on prices and third-quarter grind data for Europe, North America and Asia in early October would be closely watched. The European grind data is expected to be issued on October 16.

Malaysia said the U.S. has agreed to consider tariff exemptions for cocoa and palm oil, among other products.

New York cocoa CCc2 fell 0.3% to $6,934 a ton after setting a two-month low of $6,880.

SUGAR

Raw sugar SBc1 settled up 0.11 cents, or 0.7%, at 15.87 cents per lb. The market posted a weekly gain of 2.6%.

Sugar production in Brazil's key centre-south region in the first half of September is likely to have risen 15% year on year to 3.6 million tons, according to a survey of analysts published by S&P Global Commodity Insights on Thursday.

White sugar LSUc1 fell 0.4% to $461.00 a ton.