SOFTS-Raw sugar rebounds from one-month low but downside risks prevail
LONDON, Dec 19 (Reuters) - Raw sugar futures on the ICE exchange rebounded on Friday after hitting a one-month low, but were still headed for a 2% weekly loss, with more supply now expected from India, the world's second-largest producer.
SUGAR
Raw sugar SBc1 rose 2.1% to 14.78 cents per lb at 1513 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 as capping sugar's upside.
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.
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 1.9% to $423.80 a metric ton.
COFFEE
Arabica coffee KCc1 fell 0.9% to $3.4175 per lb, having hit a fresh-month low earlier of $3.4055 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.
U.S. coffee lovers hoping President Donald Trump's tariff rollbacks last month will soon lower the cost of their daily caffeine hit had better think again. Most of the added costs of tariffs have yet to reach consumers.
Robusta coffee LRCc2 was little changed at $3,676 a ton, recovering after hitting its lowest in four months at $3,666 on Thursday.
COCOA
New York cocoa CCc1 fell 1.9% to $5,815 a ton, heading for a 6% weekly loss.
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 fell 1.5% to 4,254 pounds per ton.
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