SOFTS-Raw sugar hits one-week low as dollar, increased supply weigh

LONDON, Dec 18 (Reuters) - Raw sugar futures on the ICE exchange hit their lowest in more than a week on Thursday as dealers eyed a stronger dollar and improved supply prospects.

SUGAR

Raw sugar SBc1 fell 1% to 14.61 cents per lb at 1209 GMT, having hit a more than one-week low of 14.58.

Sugar is on course to mark a fourth consecutive losing session, reversing some of the gains seen since it hit 5 year lows in November.

Weighing on sugar, the dollar has been rising versus the Brazilian real BRL= in recent sessions, encouraging exporters in the world's top sugar producer to sell by raising returns in local currency terms.

Elsewhere, the U.S. Department of Agriculture has estimated sugar production in the current 2025/26 season will rise by 8.3 million tons year-on-year to 189.3 million tons.

Still, broker StoneX said the feeling in the market overall is that when the front month sugar contract expires in just over two months time, sugar will have already seen the floor.

"Not because the scenario has turned bullish, but because sugar seems close to a level where sellers lose interest and buyers start to react more to headline risk," the broker explained.

White sugar LSUc1 fell 0.8% to $419.10 a ton.

COFFEE

Arabica coffee KCc2 rose 0.7% to $3.4965 per lb, having earlier hit its lowest since late September at $3.4605.

Arabica has been trending down since the Trump administration removed tariffs on coffee imports from top grower Brazil late last month.

Also weighing, ICE-certified arabica stocks are creeping higher KC-TOT-TOT and dealers say near-ideal weather in top producer Brazil is boding well for next year's crop.

Robusta coffee LRCc2 was unchanged at $3,705 a metric ton, having hit its lowest level since mid-August at $3,675.

Local robusta prices in top grower Vietnam's have fallen to their lowest since last March as the harvest gets underway, with increased supply and favourable weather supporting cherry-picking and drying, traders said.

COCOA

New York cocoa CCc1 ​fell 0.7% to $5,939 a ton, reversing some of the gains seen since it hit near two-year lows in November.

The cocoa market remains concerned about output prospects in top grower Ivory Coast, but supply is growing elsewhere, most notably in No. 3 producer Ecuador.

London cocoa LCCc1 fell 0.6% to 4,326 pounds per ton.