Cocoa prices slide to two-month lows, coffee also falls

Cocoa futures on ICE fell to two-month lows on Tuesday with most expecting a substantial global surplus in the 2025/26 season that is set to start next week.

COCOA

* London cocoa C2! lost 0.7% to 4,912 pounds a metric ton by 1116 GMT after setting a two-month low of 4,874 pounds.

* Dealers said origin hedge-selling ahead of the start of the 2025/26 season had put downward pressure on prices.

* The prospect of a further delay in the implementation of the EU's anti-deforestation law was also viewed in the market as bearish.

* Cocoa is one of the commodities covered by the legislation and the delay will alleviate concerns it could disrupt the flow of supplies into the European Union.

* New York cocoa CC2! was down 0.2% at $6,988 a ton after hitting a two-month low of $6,896.

COFFEE

* Arabica coffee KC2! lost 1.9% to $3.4130 per lb.

* Dealers said rains in Brazil had improved the outlook for next year's crop which is currently in the flowering stage.

* They noted underlying support was expected at around $3.35 per lb.

* Robusta coffee RC2! fell 2.1% to $4,189 a ton.

SUGAR

* Raw sugar SB1! rose 0.1% to 15.27 cents per lb, edging away from an earlier 2-1/2 month low of 15.10 cents.

* Dealers said the strong preference for mills in Brazil to use cane to make sugar rather than ethanol seemed to have continued this month, adding to supplies of the sweetener.

* Favourable cane crop prospects for Asian producers including India and Thailand have also weighed on prices.

* White sugar SF1! was up 1.1% at $456 a ton.