SOFTS-Cocoa prices hit 2-1/2 month lows, raw sugar gains as October expires

NEW YORK, 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.

Raw sugar's October contract expired with a large delivery.

COCOA

London cocoa LCCc2 ​settled down 120 pounds, or 2.5%, to 4,746 pounds per metric ton 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.

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 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 crop, two sources told Reuters on Monday.

New York cocoa CCc2 fell 3.3% to $6,796 a ton after setting a 2-1/2 month low of $6,731.

COFFEE

Arabica coffee KCc2 settled up 3.4 cents, or 1%, at $3.5895 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.

High prices have led to falling consumption in Brazil, a study showed.

Robusta coffee LRCc2 rose 0.3% to $4,186 a ton.

SUGAR

Raw sugar SBc1 gained 0.5% to 16.10 cents per lb, its fourth consecutive gain.

The October contract expired with a delivery seen at 1.52 million tons, one of the largest for the contract.

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 1.3% at $468.30 a ton.