SOFTS-Cocoa futures pushed down by weak demand while sugar also falls

LONDON, Feb 4 (Reuters) - Cocoa futures fell on Wednesday as the market remained on the defensive owing to weak demand that is leading to a build-up in stocks of unsold beans in both Ivory Coast and Ghana

COCOA

London cocoa LCCc1 lost 2.6% to 3,008 pounds a metric ton by 1256 GMT, slipping back towards a more than two-year low of 2,728 pounds set on Friday.

A surge in cocoa prices in 2023 and 2024 has driven up the cost of chocolate, curbing demand, while some manufacturers have reformulated products to reduce cocoa content.

Cadbury parent Mondelez International MDLZ.O expects a subdued year ahead as price increases deter shoppers already facing rising living costs and macroeconomic uncertainty.

New York cocoa CCc1 fell 2.35% to $4,199 a ton.

SUGAR

Raw sugar SBc1 lost 0.75% to 14.52 cents per lb, slipping back towards a 2-1/2 month low of 14.13 cents set on Monday.

Dealers continued to keep a close watch on news from the annual Dubai sugar conference, with forecasts that the market is likely to be more balanced in the coming 2026/27 season because of declining production.

White sugar LSUc1 retreated by 1.1% to $412.90 a ton.

Indian sugar mills are unlikely to export their full allocation of 1.5 million tons in the current 2025/26 marketing year ending in September, a senior industry official said on Wednesday.

COFFEE

Arabica coffee KCc1 gained a marginal 0.2% to $3.1770 per lb​​, with the market stabilising after falling sharply on Tuesday to a 5-1/2 month low of $3.1480.

Dealers said the weather in top coffee producer Brazil was generally favourable and a larger arabica crop was expected this year.

Robusta coffee LRCc1 rose 1.5% to $3,866 a ton.