Coffee slides as Brazil rains loom, EU law delayed; sugar, cocoa also fall
Recasts, adds details, updates prices
LONDON, Oct 2 (Reuters) - Coffee futureson ICE fell on Wednesday as rains loomed in top producer Brazil and as the European Commission proposed delaying its landmark anti-deforestation law.
COFFEE
* December arabica coffee KCc1 fell 2.2% to $2.5840 per lb at 1455 GMT.
* November robusta coffee LRCc1 fell 5.7% to $5,131 a metric ton.
* Dealers said coffee supplies remain tight, despite this, the market might have peaked in the short term amid increased confidence that Brazil rains will arrive and as the new crop in Vietnam gets underway.
* They also expressed relief the EU had proposed delaying the EU Deforestation Regulation (EUDR) banning the import of commodities linked to deforestation by 12 months.
* Coffee traders had been in a rush to ship beans to the bloc before Dec 30, when the law was originally slated to enter into force.
SUGAR
* March raw sugar SBc1 fell 1% to 22.74 cents per lb, having closed up 2.2% on Tuesday.
* Limiting losses in sugar, oil prices rallied on concerns Middle East tensions could boil over and disrupt crude supplies. Higher oil prices increase demand for ethanol, tempting mills to produce more of the cane-based biofuel at the expense of sugar.
* Supplies in the local market in Brazil also remaintight, and consistent rains are needed to improve crop prospects, according to dealers.
* December white sugar LSUc1 fell 1.6%to $573.40 a metric ton.
COCOA
* December New York cocoa CCc1 slipped 0.3% to $7,250 a metric ton, having lost 8.8% on Tuesday and 6.8% on Monday.
* Dealers said the EUDR delay was bearish for cocoa, like coffee, and thatfavourable weather in top growers Ivory Coast and Ghana continues to improve prospects forthe main crop.
* Cocoa futures trade remains extremely volatile however, due to historically low open interest.
* March London cocoa LCCc2 fell 1.5%to 4,352 a ton, having lost 1.9% lower in the prior session and 4.1% on Monday.
Reporting by Maytaal Angel; Editing by Shreya Biswas and Shailesh Kuber
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