NY cocoa turns higher after setting two-month low

New York cocoa futures turned higher on Tuesday, after earlier slumping to a two-month low, while coffee prices stabilised after a recent sharp decline.

COCOA

* New York cocoa CC2! was up 1.2% at $7,085 a metric ton by 1409 GMT, rebounding from an earlier two-month low of $6,896.

* Dealers said harvests may get off to a slow start in parts of West Africa, with the main crop season due to start on October 1.

* "Wet weather may delay cocoa harvesting across southern West Africa's key crop areas," LSEG Research and Insights said in a note on Tuesday.

* Origin hedge-selling ahead of the start of the 2025/26 season has recently 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.

* London cocoa C2! lost 0.2% to 4,937 pounds a metric ton, after setting a two-month low of 4,874 pounds.

COFFEE

* Arabica coffee KC2! rose 0.2% to $3.4870 per lb, with the market stabilising after its recent steep fall.

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

* Robusta coffee RC2! gained 0.2% to $4,287 a ton.

SUGAR

* Raw sugar SB1! rose 1.7% to 15.51 cents per lb, rebounding 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 2.3% at $461.50 a ton.