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

NEW YORK, 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 ​​settled down 95 pounds, or 2.2%, at 4,308 pounds per metric ton, after hitting its lowest since February 2024 at 4,240 pounds.

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 1.7% to $6,192 a ton.

COFFEE

Arabica coffee KCc2 settled down 5.8 cents, or 1.6%, at $3.5915 per lb, having fallen 2.5% on Monday.

The Brazilian and U.S. presidents agreed to meet in person after a friendly video call on Monday, boosting prospects for a thaw in bilateral relations.

Dealers said the 50% tariff on 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 3.26 million bags of green coffee in September, 19.5% less than 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.

"It is just too soon to say that this rally is over. And the slightest negative supply news could really set this market off," said U.S.-based Cardiff Coffee Trading in a note, adding that the climate situation in Brazil is still uncertain.

Robusta coffee LRCc2 fell 1.7% to $4,388 a ton.

SUGAR

Raw sugar SBc1 ​​​settled down 0.18 cent, or 1.1%, at 16.63 cents per lb, having hit a two-month high earlier of 16.88 cents/lb. It was the first loss after eight consecutive sessions of gains.

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 1.4% to $458.00 a ton.