SOFTS-Sugar falls after oil price slump as Trump backs down on Iran power strikes

NEW YORK, March 23 (Reuters) - Raw sugar futures on ICE fell on Monday after oil prices slumped following comments from U.S. President Donald Trump that he would postpone any strikes on Iranian power plants and energy infrastructure for five days.

Falling energy prices can prompt cane mills in top growers Brazil and India to produce more sugar and less ethanol, a cane-based biofuel.

SUGAR

Raw sugar SBc1 ​settled down 0.18 cent, or 1.1%, at 15.52 cents per lb, having earlier hit its highest since October at 15.75 cents per lb.

The contract posted a gain of nearly 10% last week, matching gains in the energy complex and marking its highest weekly ascent in 1-1/2 years thanks to soaring energy.

Several countries are planning to increase use of ethanol due to high gasoline prices, supply chain services provider Czarnikow said on Monday.

Trump's move earlier to postpone any strikes against Iranian power plants gave sugar a breather, coming just hours ahead of a deadline that threatened further escalation.

Also weighing on sugar, mills in No. 2 grower India have returned to the export market, locking in 100,000 metric tons of shipments in a week after a slump in the rupee and a rally in global prices restored the economics of overseas sales.

White sugar LSUc1 fell 0.6% to $448.70 a ton.

COFFEE

Arabica coffee KCc1 settled down 2.75 cents, or 0.9%, at $3.07 per lb, giving back some of last week's 8.6% gain after the Trump comments.

Farmers in top grower Brazil had been holding back sales on worries over further shipping disruptions and rising freight, fertilizer and energy costs linked to the Iran war.

"Brazil said last week that exports dropped significantly in February and might not improve that much in March," noted Price Futures Group.

Robusta coffee LRCc2 fell 0.7% to $3,637 a ton.

COCOA

London cocoa LCCc1 ​settled down 46 pounds, or 1.9%, to 2,368 pounds per ton.

Cocoa arrivals at ports in top grower Ivory Coast were down 2.5% from the season start to March 22 versus the same period a year ago. They are picking up on a weekly basis, however.

Ivory Coast's cocoa grind, a measure of demand, rose 1.1% year-on-year in February.

New York cocoa CCc1 dipped 2.3% to $3,180 a ton.