Arabica coffee regains some ground after steep fall

LONDON, Sept 3 (Reuters) - Arabica coffee futures on ICE were higher on Wednesday, regaining some ground after falling sharply during the previous session, while sugar and cocoa prices were little changed.

COFFEE

Arabica coffee futures KCc2 rose 0.6% to $3.7270 per lb by 1108 GMT. Prices fell by 4.1% on Tuesday.

The market climbed to a 3-1/2 month peak of $3.9130 last week.

Dealers said more rain is needed in Brazil to ensure a good flowering which will be key for next year's arabica crop in the world's top producer.

Robusta coffee LRCc2 rose 0.45% to $4,419 a metric ton.

Coffee roasters 3 Coracoes and Melitta are raising prices for their products in Brazil, the world's second-largest coffee consumer behind the U.S., according to documents sent to clients and seen by Reuters.

SUGAR

Raw sugar SBc1 fell 0.2% to 16.12 cents per lb after hitting a near four-week low of 16.05 cents.

Dealers said the outlook for cane crops in India and Thailand remained favourable after good rains this year, while in Brazil mills continue to favour using cane to make sugar rather than ethanol when possible.

White sugar LSUc1 fell 0.1% to $490.70 a ton.

Dealers noted October's premium to December LSU-1=R had fallen back to around $15.50 from a peak on Tuesday of about $21. The October contract is due to expire on September 15.

COCOA

London cocoa LCCc2 fell 0.5% to 5,241 pounds a 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 gained 0.3% at $7,566 a ton.