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.
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