SOFTS-Arabica coffee gains amid concerns over U.S. tariffs; sugar hits 2-month low

NEW YORK, Sept 4 (Reuters) - Arabica coffee futures on ICE rose on Thursday as Brazil's national food agency Conab warned about rising prices in the wake of the U.S. move to slap 50% tariffs on imports from Brazil.

Raw sugar hit a two-month low.

COFFEE

Arabica coffee futures KCc2 settled up 0.75 cent, or 0.2%, at $3.744 per lb, having hit a four-month peak of $3.9130 last week.

Conab said in a report it will not be easy for the U.S. to replace Brazilian coffee with product from other origins in a global market already buoyed by tight stocks, adding the trend of rising prices could persist.

The U.S. is the world's largest coffee consumer, while Brazil is the No. 1 producer and exporter.

The agency at the same time cut its forecast for Brazil's 2025 coffee crop, pegging it at 55.2 million bags from 55.7 million previously. The figure still represents growth of 1.8% versus the previous year.

Brazilian coffee exports fell 31% in August to 2.38 million bags, the government said on Thursday.

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 0.9% to $4,414 a metric ton.

SUGAR

Raw sugar SBc1 ​​settled down 0.34 cent, or 2.1%, at 15.69 cents per lb, having hit a two-month low of 15.66.

The outlook for cane crops in India and Thailand remains favorable after good rains this year, while Brazilian cane mills continue to favor producing sugar over ethanol when possible.

Dealers noted pressure on sugar from weak oil prices as well, which drives Brazilian mills to make even more sugar and less ethanol.

White sugar LSUc1 fell 0.5% to $482.20 a ton.

South Africa's sugar farmers are facing a "double whammy" from U.S. tariffs and from cheap imports of the sweetener hailing from countries including neighbouring Eswatini.

COCOA

London cocoa LCCc2 settled down 126 pounds, or 2.4%, to 5,139 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 showed on Tuesday.

New York cocoa CCc2 fell 3.5% to $7,399 a ton.