Arabica coffee prices fall, New York cocoa also down

Arabica coffee futures fell on Tuesday, retreating from the prior session's 3-1/2 month high, with the market technically overbought after its recent rapid rise.

COFFEE

* Arabica coffee futures KC2! lost 1.3% to $3.7285 per lb by 1345 GMT, slipping back after setting a 3-1/2 month high of $3.8710 on Monday.

* Dealers said the recent run-up was fuelled partly by a drop in certified exchange stocks as U.S. roasters look for alternative sources of supply after the U.S. government imposed a 50% tariff on imports of Brazilian coffee.

* They also noted rains would be needed in September to improve the outlook for next year's arabica crop in Brazil, which has been impacted by dry weather and cold snaps.

* StoneX on Monday forecast that Brazil's 2025/26 arabica crop would fall 18.4% to 36.5 million 60-kg bags.

* Brazil's conilon (robusta) crop, which is often irrigated, appeared in better shape, dealers added.

* Robusta coffee RC2! rose 0.15% to $4,657 a metric ton.

COCOA

* New York cocoa CC2! was down 4.5% at $7,653 a ton with the market resuming its recent downtrend after a short-lived rebound on Monday.

* Dealers said weak demand continued to weigh on prices.

* "The weakness in prices is likely to be due to demand concerns triggered by weak cocoa grinding figures in Europe, Asia, and North America for the second quarter," Commerzbank said in a note.

"Moreover, U.S. import tariffs on various cocoa-producing countries, ranging from 10 to 15 percent, could further weigh on cocoa demand in the U.S."

* London cocoa C2! rose 0.1% at 5,325 pounds per ton, partly adjusting to gains in New York on Monday when UK-based markets were shut for a public holiday.

* The U.S. has agreed in principle to exempt Indonesian exports of cocoa from the 19% tariff imposed by President Donald Trump since August 7, Indonesia's top trade negotiator said on Tuesday.

SUGAR

* Raw sugar SB1! was up 0.5% at 16.48 cents per lb.

* White sugar SF1! gained 0.3% to $488.10 a ton.