London cocoa recovers, robusta coffee falls more than 3%
Adds comments on coffee, updates prices
NEW YORK, Oct 17 (Reuters) - London cocoa futures on ICE recovered to close up on Thursday after falling earlier amid a drop in the European third-quarter grind that reinforced concerns about weak demand. Robusta coffee fell sharply.
COCOA
* March London cocoa LCCc2 settled up 34 pounds, or 0.7%, to 5,220 pounds per metric ton.
* Europe's third-quarter cocoa grind, a measure of demand, fell 3.3% from a year earlier to 354,334 metric tons, data showed earlier, while Asia's third-quarter cocoa grind rose 2.6% year-on-year to 216,998 metric tons.
* Dealers, who said the Europe grind figures were at the lower end of expectations, are now awaiting North America grind data due later on Thursdayfor further clues as to how demand is reacting to historically high cocoa prices.
* Falling exchange stocks helped to underpin prices. Total valid stocks on the ICE London cocoa contract totalled 29,020 tons as of Oct. 16, versus 150,520 a year ago.
* December New York cocoa CCc1 was little changed at $7,771 a ton.
COFFEE
* December arabica coffee KCc1 settled down 2.85 cents, or 1.1%, at $2.5515 per lb.
* Arabica prices have been rising for much of this year following adverse weather in top producer Brazil, but dealers say they are growing increasingly concerned about demand growth in coffee.
* Rains may have come too late forBrazil's coffee, said farmers and agronomists, expecting a 2025 crop below potential.
* Food giant Nestle NESN.S cut its full-year sales outlook following weaker-than-expected nine-month underlying sales growth as consumers react to rising prices for its packaged food products, especially coffee and chocolate.
* November robusta coffee LRCc1 fell 3.6% to $4,685 a ton, having hit a one-month low of $4,657.
* One broker noted arbitrage business in the market, with some investors selling robusta and buying arabica due to an unusual small price gap between the two.
SUGAR
* March raw sugar SBc1 settled up 0.16 cents, or 0.7%, at 22.16 cents per lb, having closed down 3.6% on Wednesday.
* The market has seen downward pressure from Brazil rains and good Northern Hemisphere production, dealers said.
* December white sugar LSUc1 rose 0.4% to $565.70 a ton, having closed down 2.4% on Wednesday.
Reporting by Maytaal Angel, Nigel Hunt and Marcelo Teixeira; Editing by Eileen Soreng, Jan Harvey and Shreya Biswas
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