SOFTS-London cocoa hits 1-1/2 year low, coffee also down

LONDON, Oct 7 (Reuters) - London cocoa futures on ICE hit their lowest in more than 1-1/2 years on Tuesday, with supplies boosted by newly harvested crops from West Africa, while demand remained weak.

COCOA

London cocoa LCCc2 ​fell 2.1% to 4,310 pounds per metric ton at 1439 GMT, after hitting its lowest since February 2024 at 4,240 pounds. The market fell 10% last week.

Indicating ample near-term supply, cocoa for December 2025 delivery last 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 2.1% to $6,164 a ton.

COFFEE

Arabica coffee KCc2 fell 2.2% to $3.5695 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.

Dealers said the imposition of a 50% tariff on shipments of Brazilian coffee to the U.S. had contributed to a run-up in prices in the third quarter of this year and so any sign they may be removed or reduced was seen as bearish.

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 1.25% to $4,408 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.

Dealers said short-covering by speculators had helped to fuel the recent run-up in prices but fundamentals remained bearish with a global surplus expected in the 2025/26 season.

White sugar LSUc1 fell 1.5% to $457.40 a ton.