Coffee steadies near lows as rains set to hit Brazil
LONDON, Oct 8 (Reuters) - Coffee futures on ICE steadied on Tuesday, with robusta having earlier hit a 1-1/2 month low and arabica not far off a one month low hit on Monday as long-awaited rains were set to hit top grower Brazil.
COFFEE
* December arabica coffee KCc1 was up 1.5% at $2.4815 per lb at 1217 GMT, having settled down 4.9% on Monday.
* "I expect prices to continue to head lower to the 235-240 range by the end of the week," said a dealer, citing Brazil rains.
* Rains are expected in all of Brazil's major coffee regions this week, which should help trees flower - a key crop development phase - although the extent of damage from the recent drought is still unknown.
* November robusta coffee LRCc1 rose 1.1% to $4,917 a metric ton, having hit its lowest since Aug 23 earlier at $4,885.
SUGAR
* March raw sugar SBc1 rose 0.2% to 22.56 cents per lb, having closed down 2% on Monday.
* Brazil rain forecasts are also weighing on sugar, though the rains should be scattered in the sugar areas, unlike coffee. Sugar is also being underpinned by rising energy prices, which make ethanol more attractive to produce than sugar.
* Germany's refined sugar production from beets in the new 2024/25 season now underway is forecast to rise to about 4.95 million metric tons, up about 17% from last season, Germany's sugar industry association WVZ said.
* The U.S. Department of Agriculture (USDA) revised down its Brazil sugar production forecast for the country's current 2024/25 season from 44 to 43 million tons due to worsening in sugarcane quality.
* December white sugar LSUc1 rose 0.6% to $573.60 a ton.
COCOA
* March London cocoa LCCc2 rose 2.1% to 4,536 a metric ton, but remained above last week's eight-month low.
* Favourable weather in top growers Ivory Coast and Ghana continues to weigh on cocoa.
* Above average rainfall last week in most of Ivory Coast’s main cocoa producing regions boosted farmers’ hopes of higher output in the current October to March main crop season.
* U.S. confectionery companies are stocking store shelves with fewer chocolates and doubling down instead on cheaper gummies and liquorice this Halloween, thanks to high cocoa costs.
* December New York cocoa CCc1 rose 2.9% to $7,104 a ton, having lost 15% last week.
Reporting by Maytaal Angel, Editing by Louise Heavens
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