SOFTS-Arabica coffee gains ground, raw sugar near 4-week low

NEW YORK, Sept 3 (Reuters) - Arabica coffee futures on ICE closed higher on Wednesday, regaining some ground after falling sharply during the previous session, while raw sugar slipped to nearly a four-week low.

COFFEE

Arabica coffee futures KCc2 settled up 3.3 cents, or 0.9%, at $3.7365 per lb. Prices fell 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.

They noted certified stocks at ICE continued to fall and were now at the lowest level since May 2024.

Robusta coffee LRCc2 gained 1.3% to $4,454 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 ​​settled down 0.12 cent, or 0.7%, at 16.03 cents per lb, near a four-week low.

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

White sugar LSUc1 fell 1.3% to $484.40 a ton.

Ukraine is likely to reduce white sugar production to up to 1.5 million metric tons in 2025 from 1.8 million tons due to significant stocks and export challenges, the head of the national sugar union Ukrtsukor said late on Tuesday.

COCOA

London cocoa LCCc2 was little changed at 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 gained 1.6% to $7,669 a ton.