SOFTS-Cocoa slumps to year low as harvest gets underway in West Africa
LONDON, Oct 3 (Reuters) - Cocoa futures on ICE slumped to one-year lows on Friday as the main crop harvest gets underway in West Africa, with farmers in both Ivory Coast and Ghana encouraged to sell by higher farmgate prices.
Meanwhile, coffee futures hit two-week highs.
COCOA
* London cocoa LCCc2 fell 4.3% to 4,355 pounds a metric ton at 1514 GMT, having hit its lowest since early October last year at 4,320.
* World No. 2 cocoa grower Ghana raised the 2025/26 farmgate price by another 12% to 58,000 Ghana cedis ($4,640.00) a ton, marking the second price increase this year.
* The move was in response to top producer Ivory Coast announcing on Wednesday a 2025/26 farmgate price 55.6% above last season at 2,800 CFA francs ($5.04) per kg or $5,050 a ton.
* Authorities, especially in Ghana, have been seeking to increase farmers' incomes to deter smuggling.
* On the demand side meanwhile, dealers expect third-quarter cocoa grind data for Europe, North America and Asia to show year-on-year declines in all three regions.
* Broker Berenberg has downgraded Cadbury parent Mondelez MDLZ.O to "hold" from "buy" due to weak European chocolate demand and limited benefits from falling cocoa costs.
* New York cocoa CCc2 fell 4.6% to $6,212 a ton after slumping to its lowest since late October last year at $6,188.
COFFEE
* Arabica coffee KCc2 rose 1.8% to $3.6905 per lb, having hit a two-week high of $3.7300.
* Dealers said the trade has largely discounted extremely tight exchange stocks KC-TOT-TOT and is waiting to see whether the 50% U.S. tariff on Brazilian imports could be lifted in talks between the U.S. and Brazilian presidents.
* There is no specific date for the talks yet, with some speculation they could happen at the ASEAN summit on October 26-27.
* Robusta coffee LRCc2 rose 5.3% to $4,554 a ton, having hit a two-week high of $4,574.
SUGAR
* Raw sugar SBc1 rose 0.5% to 16.48 cents per lb.
* Sugar production in Brazil's key centre-south region rose 15.72% in the first half of September compared to the year-earlier period, industry data showed. The figures were broadly in line with expectations.
* White sugar LSUc1 was little changed at $458.20 a ton.
($1 = 556.0000 CFA francs)
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