SOFTS-Cocoa prices ease while robusta coffee extends decline

LONDON, Dec 2 (Reuters) - London cocoa futures were lower on Tuesday as concerns about weak demand continued to weigh on prices, while robusta coffee extended this week's decline.

COCOA

London cocoa LCCc2 fell 0.7% to 4,065 pounds per metric ton by 1456 GMT, although prices remained well above a near two-year low of 3,650 pounds set a week ago.

Dealers said the market would be keeping a close watch on whether grindings fall further in the 2025/26 season (October/September). The European cocoa grind fell by 5.3% in 2024/25.

They also noted rains were improving the outlook for the tail end of the 2025/26 main crop in top grower Ivory Coast.

Commerzbank, in a daily update, noted that the International Cocoa Organization's recent estimate that there was a surplus of only 49,000 tons in 2024/25 suggested supply tightness had not eased as much as expected following a massive deficit of 489,000 tons in 2023/24.

"The sharp drop in prices in recent months may therefore have been exaggerated," Commerzbank said.

New York cocoa CCc2 lost 0.3% to $5,537 a ton.

COFFEE

Robusta coffee LRCc1 was down 2.1%, at $4,380 a ton as drier weather in Vietnam allowed harvesting to resume after recent delays caused by storms and flooding.

Dealers said Vietnam was still on track to harvest a large crop this year, despite rain delays, although there are concerns about the quality of the beans.

Arabica coffee KCc2 fell 0.65% to $3.7710 per lb.

SUGAR

Raw sugar SBc1 gained 0.8% to 14.88 cents per lb.

Dealers said the upside continued to be capped by signs that crops are progressing well, but some viewed current prices as too cheap.

India's sugar production in the first two months of the 2025/26 season, which began on October 1, rose 43% from a year earlier, driven by better recovery rates and faster crushing across major producing states, industry bodies said on Tuesday.

White sugar LSUc1 rose 1.3% to $426.50 per ton.