Coffee prices ease on expected Brazil rains
LONDON, Oct 3 (Reuters) -Coffee futures were slightly lower on Thursday with expected rains seen boosting the outlook for crops in Brazil while London cocoa prices turned higher after slumping to an eight-month low.
COFFEE
* December arabica coffee KCc1 fell 0.4% to $2.5540 per lb by 1330 GMT, having settled down 2.9% on Wednesday.
* Dealers said forecasts that Brazil would receive much needed rains in the next few days had helped to put the market on the defensive although it is unlikely to completely allay concerns about the flowering of next year's crop following a prolonged dry spell.
* Weather service Maxar said in a report issued late on Wednesday that there would be light showers in Parana and along the cost from Thursday into the weekend while the 6-10 day outlook indicated light to moderate rains.
* November robusta coffee LRCc1 fell 0.6% to $5,081 a ton as the market waited for the harvest in top robusta producer Vietnam to gather pace.
* "The market still expects lower output in the 2024/25 crop," said Nguyen Ngoc Quynh, deputy chief of the Mercantile Exchange of Vietnam.
COCOA
* March London cocoa LCCc2 rose 1.4% to 4,415 pounds a ton. Prices had earlier hit an eight-month low of 4,296 pounds.
* Dealers said favourable crop weather in top growers Ivory Coast and Ghana was improving the main crop outlook and had eroded some of the steep gains posted earlier this year.
* December New York cocoa CCc1 fell 0.2% to $7,047 a metric ton afetr hitting a 4-1/2 month low of $6,884.
SUGAR
* March raw sugar SBc1 rose 1.5% to 23.03 cents per lb, boosted partly by rising oil prices.
* Stronger energy prices can lead to more use of cane to produce biofuel ethanol rather than sugar.
* December white sugar LSUc1 rose 1% to $579.90 a metric ton.
Reporting by Nigel Hunt; editing by David Evans
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