SOFTS-Arabica coffee prices fall, focus on Brazil crop flowering

NEW YORK, Sept 2 (Reuters) - Arabica coffee futures on ICE fell sharply on Tuesday, slipping further from last week's 3-1/2 month high, with the market seen technically overbought after a strong run-up in prices during August.

COFFEE

Arabica coffee futures KCc2 settled down 15.75 cents, or 4.1%, at $3.7035 per lb. The market rose to a 3-1/2 month high of $3.9130 last week.

Dealers said the market's focus was on the key flowering period for the 2026/27 crop in top producer Brazil and whether there will be adequate rainfall this month.

Forecaster Somar reported some rains over the weekend in the main Brazil coffee belt in Minas Gerais, but more is needed for a good flowering. The GFS weather model predicts some more rains for around September 11.

A Reuters poll issued last week had a median forecast for Brazil's 2026/27 crop of 70 million bags, up from 65 million bags in the current season.

The 2025/26 harvest is now almost complete.

Robusta coffee LRCc2 fell 4.9% at $4,399 a metric ton after a 3.9% drop on Monday when U.S. markets were shut.

SUGAR

Raw sugar SBc1 ​settled down 0.22 cent, or 1.3%, at 16.15 cents per lb after hitting a two-week low of 16.12 cents/lb.

Dealers said the cane harvest in Centre-South Brazil was progressing well and mills continued to favour using the cane to make sugar rather than ethanol when possible, helping to keep a lid on the raw sugar market.

White sugar LSUc1 fell 2.2% to $491.00 a ton.

Dealers noted October's premium to December LSU-1=R had widened to more than $20, up from less than $10 a few days ago. The October contract is due to expire on September 15.

COCOA

London cocoa LCCc2 ​settled down 13 pounds, or 0.2%, to 5,265 pounds per ton.

Cocoa prices are expected to fall further by the end of 2025 with weak demand contributing to a widening global surplus in the upcoming 2025/2026 season, a Reuters poll of nine traders and analysts showed on Tuesday.

New York cocoa CCc2 fell 2.1% to $7,546 a ton.