SOFTS-Raw sugar hits two-month high; cocoa prices climb further

NEW YORK, Aug 12 (Reuters) - Raw sugar futures on ICE rose sharply on Tuesday to hit a two-month high amid improving demand in the physical markets, while cocoa futures also rose buoyed by fund short-covering against a backdrop of concern over the crop in top grower Ivory Coast.

SUGAR

* Raw sugar SBc1 ​​​​​settled up 0.45 cents, or 2.7%, at 16.94 cents per lb, having hit a two-month high of 17.05 cents.

* Dealers said the market had been steadily climbing after hitting a one-month low of 15.92 cents in early August, with speculators beginning to scale back a large net short position.

* They noted an increasing line-up of vessels in top exporter Brazil with China being the destination of a third of the volume to be loaded.

* In other news, the United States is likely to have a record sugar production in the season starting in October.

* White sugar LSUc1 gained 2.4% to $486.20 a metric ton.

COCOA

* New York cocoa CCc2 settled up $224, or 2.7%, to $8,668 a ton, climbing back towards Monday's six-week high of $8,823.

* Dealers said the market had gained support this week from concern over Ivory Coast's coming crop, with the initial upward move on Monday helping to trigger short-covering by funds.

* More sunny spells across most of Ivory Coast's cocoa-growing regions will help to boost development of the next October-to-March main crop, farmers said on Monday, adding that cold weather continued last week with below-average rainfall.

* London cocoa LCCc2 gained 1.6% to 5,804 pounds per ton.

COFFEE

* Arabica coffee futures KCc1 settled down 5.55 cents, or 1.7%, at $3.1515 per lb​​ after touching a six-week high of $3.27.

* Dealers said reports of light, spotty frosts in some Brazilian coffee areas had contributed to the run-up in prices this week, though the harvest continues to progress well.

* A farming group in the Cerrado Mineiro region of Brazil said on Tuesday that several coffee farms reported frosts, although not as intense as in 2021 when the same region was severely hit.

* Robusta coffee LRCc2 fell 1% to $3,628 a ton.