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 dealers citing the influence of weak demand on an expected global surplus in the coming 2025/26 season.

COCOA

London cocoa LCCc2 fell 2.6% to 4,740 pounds a metric ton by 1310 GMT after hitting a 2-1/2 month low of 4,711 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 harvest of the main crop in top grower Ivory Coast is due to start on Wednesday and early arrivals are 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 main crop, two sources at the cocoa sector regulator told Reuters on Monday.

New York cocoa CCc2 was down 3.3% at $6,799 a ton after setting a 2-1/2 month low of $6,731.

COFFEE

Arabica coffee KCc2 rose 0.65% to $3.5785 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, though no date has been announced.

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

Robusta coffee LRCc2 was up 0.9% at $4,210 a ton.

SUGAR

Raw sugar SBc1 was down 0.06% at 16.01 cents per lb.

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

White sugar LSUc1 rose 0.2% to $463.40 a ton.