SOFTS-Raw sugar edges up off one month low but downside risks prevail

LONDON, Dec 19 (Reuters) - Raw sugar futures on the ICE exchange edged up off a one-month low on Friday but headed for a 3% weekly loss, with more supply now expected from India, the world's second-largest producer, and weakening demand in key consuming countries.

Cocoa and coffee also gained.

SUGAR

Raw sugar SBc1 rose 1.1% to 14.64 cents per lb at 1128 GMT, having hit a more than one-month low of 14.38 on Thursday.

Broker StoneX cited rumours that No. 2 producer India needs to raise its 1.5 million ton sugar export quota for next year by an additional 0.5-1.5 million tons.

Government officials on Thursday said India's output is projected to rise 18% in 2025/26, and the country will manage the excess by allowing exports.

Demand is meanwhile flagging in key consuming countries such as China and the U.S, while the Brazilian real BLR= remains weak versus the dollar, encouraging exporters to sell by raising their local-currency returns.

Given the above, the market is likely to drift lower into the year end unless a bullish trigger emerges, said StoneX.

In news, Ukraine has harvested 10.74 million metric tons of sugar from 99.2% of the sown area as of Dec 18, data showed.

White sugar LSUc1 rose 0.8% to $419.30 a metric ton.

COFFEE

Arabica coffee KCc1 edged up 0.3% to $3.30 per lb, having matched Thursday's four-month low of $3.45 earlier.

Arabica has been trending lower since the Trump administration removed tariffs on coffee imports from top grower Brazil last month and as benign Brazilian weather bodes well for next year's crop.

Robusta coffee LRCc2 rose 1% to $3,714 a ton, recovering after hitting its lowest in four months at $3,666 on Thursday as the harvest in top grower Vietnam gathers pace.

COCOA

New York cocoa CCc1 ​​rose 0.4% to $5,955 a ton, but is heading for 4% losses this week.

Cocoa is overall reversing last week's 10% gain that took it well off November's near two-year lows.

Broker ADM ISI said the market is generally of the view that production in top grower Ivory Coast will rise this season, but recent above normal rains could provide a temporary reduction in port arrivals that might spook the bears.

London cocoa LCCc1 edged up 0.3% to 4,340 pounds per ton.