SOFTS-London cocoa sets two-week low; sugar and coffee gain

LONDON, Dec 23 (Reuters) - London cocoa futures on ICE touched a two-week low on Tuesday, with recent rains seen as beneficial for crops in top grower Ivory Coast, while a strengthening in the value of sterling added to downward pressure on prices.

COCOA

London cocoa LCCc1 was down 0.1% at 4,264 pounds a metric ton by 1504 GMT after setting a two-week low of 4,153 pounds.

Recent unseasonably heavy rainfall in top grower Ivory Coast may have temporarily slowed port arrivals but could boost the size and quality of the October-to-March main crop, heightening the prospect of a global surplus this season.

The strength of sterling against the dollar has also pressured London prices this week.

Dealers said, however, activity was subdued ahead of upcoming holidays and the market lacked significant momentum at the moment in either direction.

New York cocoa CCc1 rose 0.2% to $5,899 a ton.

SUGAR

Raw sugar SBc1 was up 0.7% at 15.10 cents per lb.

Dealers said the market was in the midst of a short-term bounce as speculators scale back short positions, but the overall mood remained bearish, with the 2025/26 season expected to show a global supply surplus.

White sugar LSUc1 gained 0.75% to $429.50 a ton.

Sugar production in Brazil's centre-south region is expected to reach 38 million tons in the 2026/27 season, agribusiness consultancy Safras & Mercado said on Monday, down 5% from the previous season.

COFFEE

Robusta coffee LRCc2 rose 1.9% to $3,839 a ton.

Dealers said recent weakness in prices had led to slower farm sales in top robusta producer Vietnam, helping to tighten supplies.

Indonesia's Senior Economic Minister Airlangga Hartarto, speaking after meeting U.S. Trade Representative Jamieson Greer, said the United States had agreed to give Indonesian coffee a tariff exemption.

Arabica coffee KCc1 gained 0.9% to $3.5045 per lb.