SOFTS-Arabica coffee turns lower after setting two-month peak

LONDON, Aug 18 (Reuters) - Arabica coffee futures on ICE turned lower on Monday in a modest setback after their recent strong advance to a two-month peak, while cocoa prices were higher.

COFFEE

* Arabica coffee futures KCc1 were down 0.8% at $3.3880 per lb by 1115 GMT.

* Prices rose a two-month high of $3.4690 in early trade on follow-through buying after rising by nearly 5% on Friday.

* Dealers said the recent run-up had been driven partly by a drop in certified exchange stocks to a one-year low as roasters look to secure alternative supplies following the imposition of a 50% tariff on U.S. imports of Brazilian coffee.

* They noted, however, the latest data for August 15 showed a slight rise to 731,739 bags, an increase of 5,078 bags from a day earlier.

* Speculators added to their net long position in arabica coffee on ICE U.S. in the week to August 12, the Commodity Futures Trading Commission said on Friday.

* Robusta coffee LRCc2 fell 1.35% to $4,012 a metric ton.

COCOA

* New York cocoa CCc2 rose 0.8% to $8,343 a ton.

* Dealers said dry weather in West Africa had raised concerns about the outlook for the upcoming 2025/26 main crop.

* London cocoa LCCc2 gained 0.5% to 5,578 pounds per ton.

* Ivory Coast's cocoa grind dropped 31.2% year-on-year in July to 39,301 metric tons, data from exporters' association GEPEX showed on Monday, with grinders citing poor bean quality and low volumes of the mid-crop.

SUGAR

* Raw sugar SBc1 fell 1.3% to 16.22 cents per lb.

* China imported 740,000 tons of sugar in July, up 76.4% from the same month last year, according to data released by the General Administration of Customs on Friday.

* White sugar LSUc1 fell 1.3% to $475.10 a ton.