SOFTS-Cocoa slides to 1-1/2 month low, coffee up on Trump tariff threats

LONDON, Jan 13 (Reuters) - Cocoa futures on the ICE exchange slumped to 1-1/2 month lows on Tuesday on indications demand for the chocolate ingredient remains weak, while coffee rose as dealers eyed renewed tariff threats from U.S. President Donald Trump.

COCOA

New York cocoa CCc1 was down 5.3% at $5,154 a metric ton at 1511 GMT, having hit a 1-1/2 month low of $5,063 earlier.

Swiss chocolate maker Lindt & Spruengli's LISN.S sales volumes, a measure of cocoa demand, declined around 6% year-on-year in 2025, Zuercher Kantonalbank said Tuesday as the company warned its volumes might remain negative in 2026.

Concerns over demand weakness continue to weigh on cocoa.

Dealers expect this Thursday's fourth-quarter Europe grind data, a measure of demand, will come in between -0.3% to -2%, while Friday's Asian grind figures will slide to between -10% to -11.7%.

London cocoa LCCc1 fell 3.6% to 3,800 pounds per ton, having hit a 1-1/2 month low of ​​3,738.

COFFEE

Arabica coffee KCc1 rose 1.2% to $3.6025 per lb, having settled down 0.4% on Monday.

U.S. President Donald Trump said on Monday any country that does business with Iran will face a 25% tariff on trade with the U.S.

Top coffee producer Brazil is a big supplier of agricultural goods to Iran, and also accounts for about a third of U.S. coffee imports and traders told Reuters they are eyeing the matter closely.

Robusta coffee LRCc2 rose 0.8% to $3,949 a ton.

SUGAR

Raw sugar SBc1 rose 0.9% to 14.97 cents per lb, having settled down 0.3% on Monday.

Europe's largest sugar producer Suedzucker SZUG.DE

cut its third-quarter losses from its sugar business to 47 million euros from 95 million euros last year, but warned EU sugar markets are likely to remain depressed

"The challenge we are facing is sugar production, in the EU and worldwide, is above consumption," a Suedzucker spokesperson said. "No significant earnings recovery in the sugar market is expected."

The global sugar surplus for the 2025/26 season is projected at 4.7 million metric tons, up 600,000 tons from a previous forecast, consultancy CovrigAnalytics said.

White sugar LSUc1 gained 1.4% to $429.20 a ton.