SOFTS-London cocoa hits near two-year lows, arabica coffee extends gains

LONDON, Nov 25 (Reuters) - London cocoa futures traded on the ICE exchange fell to near two-year lows on Tuesday, as traders priced in another expected delay to Europe's anti-deforestation law and continued to bet on supply growth this season.

Arabica coffee headed higher meanwhile.

COCOA

London cocoa LCCc2 fell 2.5% to 3,730 pounds per metric ton at 1610 GMT, after slumping to a low of 3,650, its weakest since January 2024.

Investors expect the EU will this week formally announce a delay to its flagship law banning the imports of commodities and related products linked to deforestation by another year, dealers said.

Also weighing on cocoa, port arrivals in top producer Ivory Coast are picking up after a slow start to the season, while U.S. President Donald Trump earlier this month removed tariffs on agricultural products including cocoa.

New York cocoa CCc2 fell 2.9% to $5,046, having hit its lowest since February 2024 at $4,924.

COFFEE

Arabica coffee KCc2 rose 0.9% at $3.7980 per lb, having closed up 1.9% on Monday.

Prices fell to a two-months low on Friday after the Trump administration removed 40% tariffs on imports of Brazilian coffee.

Farmers in top coffee grower Brazil are, however, holding off sales, while stocks in consuming countries remain historically low, dealers said, so the market is readjusting after Friday's sell-off.

Robusta coffee LRCc2 rose 2.2% to $4,406 after closing down 1.2% on Monday.

Rains are easing in top robusta producer Vietnam and some flooded rivers are receding but both the drying and movement of newly harvested beans remain a challenge and there are also quality concerns, dealers said.

SUGAR

Raw sugar SBc1 rose 0.2% to 14.85 cents/lb, having settled 0.3% higher on Monday.

Britain will scrap a sugar-tax exemption for pre-packaged milk-based drinks, including bottled milkshakes and milky coffees, the health department said on Tuesday, as part of efforts to curb an "obesity epidemic".

Broker and consultant Michael McDougall said that while prices are bottoming out, the market needs to close above 16.00-16.25 cents to decisively break the downtrend.

White sugar LSUc1 rose 0.4% to $426.40 a ton.