SOFTS-Cocoa prices fall with demand seen remaining weak

NEW YORK, Jan 9 (Reuters) - New York cocoa futures fell sharply on Friday, with next week's European grind data expected to show that demand remains weak, while sugar and arabica coffee were also lower.

COCOA

New York cocoa CCc1 settled down $732, or 12%, at $5,345 a ton.

Traders noted fourth-quarter grinding data should provide a focus this month, with European data scheduled to be issued on January 15.

There have been year-on-year declines in the past five quarters after a sharp rise in prices in 2024.

The North American grind is also due to be issued on January 15.

Dealers said the market was underpinned by buying related to New York cocoa's addition to the Bloomberg Commodity Index.

There is expected to be a total of about 30,000 to 40,000 lots of index-related buying from January 8 to January 14. Dealers estimated that purchases on the first day of the window totalled about 4,000 to 5,000 lots.

London cocoa LCCc1 ​​settled down 452 pounds, or 10.3%, at 3,916 pounds per ton.

COFFEE

Arabica coffee KCc1 settled down 3.9%, at $3.5765 per lb​, extending the market's retreat from the prior session's three-week high of $3.8385.

Dealers were keeping a close watch on tensions between the world's top coffee consumer, the United States, and its top suppliers Brazil and Colombia after the U.S. military operation in Venezuela.

Coffee production in Colombia, the world's leading supplier of washed arabica coffee, fell by 2.27% in 2025 to 13.6 million 60-kg bags, its first decline in three years, the National Federation of Coffee Growers said on Thursday.

Robusta coffee LRCc2 fell 0.6% at $3,903 a ton.

SUGAR

Raw sugar SBc1 settled down 0.5% at 14.89 cents per lb​​.

Dealers said a rise in output in India was contributing to a likely global surplus in the current 2025/26 season and some exports from the world's number two producer are taking place.

White sugar LSUc1 lost 0.5% at $425.90 a ton.