SOFTS-Cocoa prices hit 2-1/2 month lows as demand weakens

LONDON, Sept 30 (Reuters) - Cocoa futures on ICE slumped to 2-1/2 month lows on Tuesday with weak demand seen contributing to an expected global surplus in the upcoming 2025/26 season.

COCOA

London cocoa LCCc2 fell 2.1% to 4,762 pounds a metric ton by 1100 GMT after hitting a 2-1/2 month low of 4,760 pounds.

Dealers said weak demand remained a significant concern with next month's third quarter grind data for Europe, North America and Asia expected to show year-on-year declines in all three regions.

Grind reports for Europe and North America are both scheduled to be issued on October 16.

The main crop harvest in top grower Ivory Coast is due to start on Wednesday and early arrivals likely to be boosted by some cocoa held back to benefit from a higher farmgate price.

Ivory Coast plans to increase its farmgate cocoa price for farmers by 39% to a record 2,500 CFA francs ($4.50) per kg for the main 2025/26 crop harvest, two sources at the cocoa sector regulator told Reuters on Monday.

New York cocoa CCc2 was down 2.6% at $6,850 a ton after setting a 2-1/2 month low of $6,841.

COFFEE

Arabica coffee KCc2 rose 0.5% to $3.5735 per lb.

The market was awaiting a planned meeting this week between U.S. President Donald Trump and Brazilian President Luiz Inacio Lula da Silva although so far no date has been announced.

The meeting is expected to discuss the current 50% U.S. tariff on Brazilian coffee which has curtailed trade between the two countries.

Robusta coffee LRCc2 was up 1.1% at $4,219 a ton.

SUGAR

Raw sugar SBc1 fell 0.6% to 15.92 cents per lb.

Dealers were awaiting the release in the next few days of data on cane and sugar production in the Centre-South of Brazil covering the first half of September.

White sugar LSUc1 lost 0.3% to $461.10 a ton.