CORRECTED-SOFTS-Arabica coffee steady as investors await US-Brazil tariff news
LONDON, Aug 14 (Reuters) - Arabica coffee futures on ICE were steady on Wednesday, with investors in a holding pattern as they await news on U.S.-Brazil tariff negotiations.
COFFEE
* Arabica coffee futures KCc1 were little changed at $3.1225 per lb at 1255 GMT, having touched a six-week high on Tuesday.
* Brazil's government has unveiled an aid package for companies hurt by steep U.S. tariffs, centred on credit lines for exporters and government purchases of products that face hurdles finding alternative markets.
* Dealers said if Brazil's government starts to compete with the private sector for coffee, this will likely hit physical price differentials, not futures.
* Specifically, they said Brazilian coffee shipped to the U.S. will have to trade at a discount to futures to offset the 50% U.S. tariff, while Brazilian coffee headed for the EU or Asia will trade at a premium amid Brazilian government buying.
* Meanwhile, U.S. buyers are asking Brazil-based firms to postpone coffee shipments following the 50% tariff imposed by the Trump administration, as they await tariff negotiation news.
* Robusta coffee LRCc2 rose 1% to $3,835 a metric ton, having hit its highest in nearly two months at $3,904.
* Coffee prices in top robusta producer Vietnam rose from a week ago following a global price recovery, while demand was strong in Indonesia amid depleting stockpiles.
COCOA
* New York cocoa CCc2 fell 1.7% to $8,414 a ton, having hit a six-week high on Monday.
* Following poor weather conditions, top cocoa producer Ivory Coast has cut to 1.2 million tons its forward export contract sales for the 2025/26 main crop, down from 1.3 million.
* Dealers said the move is intended to protect against possible contract defaults and that it likely means the market will see little or no improvement in next year's Ivorian crop figures.
* "Traders remain cautious about the next main crop after a season of disease and adverse weather. While recent data confirmed some demand rationing, the multi-year deficit narrative remains intact," said Saxo Bank.
* London cocoa LCCc2 fell 1.5% to 5,674 pounds per ton.
SUGAR
* Raw sugar SBc1 fell 1.4% to 16.61 cents per lb, having hit a two-month high of 17.05 cents on Tuesday amid improving demand in the physical markets.
* White sugar LSUc1 was down 0.6% to $484.40 a ton.
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