SOFTS-London cocoa hits 1-1/2 year low as harvest gets underway, coffee heads lower
LONDON, Oct 7 (Reuters) - London cocoa futures on ICE hit their lowest in more than 1-1/2 years on Tuesday as dealers remained hopeful about harvest prospects in West Africa, while arabica coffee fell.
COCOA
* London cocoa LCCc2 fell 2.1% to 4,309 pounds per metric ton at 1250 GMT, after hitting its lowest since last February at 4,240. The market fell 10% last week.
* Indicating ample near-term supply, cocoa for December delivery last traded at a discount of 56 pounds/t versus March cocoa LCCc1-LCCc2. Moreover, it traded at a discount of 65 pounds/t versus cocoa for delivery in December 2026 LCCc1-LCCc6.
* "At a similar market level a year ago, the (Dec/Dec) yearly spread was trading at (a premium of) 1,456 (pounds/t)," said a dealer.
* Cocoa is under pressure as the West African harvest gets underway, while on the demand side, upcoming third-quarter cocoa grind data for Europe, North America and Asia is expected to show further declines.
* New York cocoa CCc2 fell 2.2% to $6,161 a ton.
COFFEE
* Arabica coffee KCc2 fell 1% to $3.6120 per lb, having settled down 2.5% on Monday.
* The Brazilian and U.S. presidents agreed to meet in person soon after a friendly video call on Monday, Brazil's government said, boosting prospects for a thaw in bilateral relations that are at their worst in decades.
* Traders expressed surprise that the market has not reacted much to the news, given it is waiting anxiously to see if the 50% U.S. tariff on Brazilian imports, which drove arabica prices to seven-month highs in September, could be lifted.
* In news, Brazil exported 195,803 tons of green coffee in September, down from 243,101 tons a year ago, government data showed.
* Also, Brazilian coffee growers reported a robust flowering in their fields, but said rain is needed for a good fruit load.
* Robusta coffee LRCc2 fell 0.3% to $4,450 a ton.
SUGAR
* Raw sugar SBc1 fell 1.8% to 16.50 cents per lb, having hit a two-month high earlier of 16.88 cents/lb.
* White sugar LSUc1 fell 1.5% to $457.40 a ton.
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