SOFTS-Arabica coffee edges further away from 3-1/2-month peak

LONDON, Sept 4 (Reuters) - Arabica coffee futures on ICE slipped on Thursday, heading further away from last week's 3-1/2-month peak as market worries over top producer Brazil's output lessened, while raw sugar hit a two-month low.

COFFEE

Arabica coffee futures KCc2 slipped 0.3% to $3.7285 per lb at 1238 GMT, having hit a peak of $3.9130 last week.

Top grower Brazil's 2025 coffee output is expected to total 55.2 million bags, national food supply agency Conab said, lowering its forecast from the 55.7 million. The figure still represents growth of 1.8% versus the previous year.

Global exports of green, or unroasted, coffee slipped 0.7% to 10.3 million bags in July versus last year, which was a record year for green bean shipments, the International Coffee Organization (ICO) said in a monthly report.

Robusta coffee LRCc2 fell 1% to $4,408 a metric ton.

Coffee prices in top robusta producer Vietnam dipped in the week to Thursday, with sales slowing as stocks dwindled at the end of the crop year, while premiums in Indonesia rose, traders said.

SUGAR

Raw sugar SBc1 ​​fell 1.1% to 15.85 cents per lb, having hit a two-month low of 15.84.

The outlook for cane crops in India and Thailand remains 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 0.5% to $482 a ton.

South Africa's sugar farmers are facing a "double whammy" from the Trump administration trade tariffs, as well as from cheap imports of the sweetener coming from countries including neighbouring Eswatini.

COCOA

London cocoa LCCc2 fell 1.3% to 5,196 pounds per ton.

Cocoa prices are expected to fall more 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 1.7% to $7,540 a ton.