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

NEW YORK, 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 and robusta coffee closed higher.

COCOA

London cocoa LCCc2 settled down 43 pounds, or 1.1%, to 3,783 pounds per metric ton, 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.

The move could allow cocoa lacking certification to be sold into the market, boosting supplies.

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 1.8% to $5,099 a ton, having hit its lowest since February 2024 at $4,924.

COFFEE

Arabica coffee KCc2 settled up 6.75 cents, or 1.8%, at $3.833 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, but have since partly recovered.

Farmers in top coffee grower Brazil are holding off sales, while stocks in consuming countries remain historically low, dealers said.

Robusta coffee LRCc2 rose 2.3% to $4,414 a ton.

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.

SUGAR

Raw sugar SBc1 settled up 0.09 cent, or 0.6%, at 14.91 cents per lb, extending Monday's gains.

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.

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 0.7% to $427.90 a ton.