Arabica coffee rises more than 3%, raw sugar steadies

NEW YORK, Sept 28 (Reuters) - Arabica coffee futures on ICE exchange gained more than 3% on Monday in a technical bounce boosted by weak farmer selling, while raw sugar futures steadied.

COFFEE

* Arabica coffee settled up 10.15 cents, or 3.6%, at $2.8875 per lb​​, after falling 5.4% last week.

* Dealers said the market was ripe for a technical correction after a sharp decline following an end-August peak that set the highest price since January.

* "I think a recovery was overdue after the decline we saw in the last 30 days," said a broker at an European coffee company.

* He added that the daily price jump was boosted by low liquidity, with timid selling interest including traders and farmers.

* Arabica, however, remains under pressure from expectations that Brazil harvested a record 2026/27 crop, but dealers said increased quality concerns might mean actual coffee available for commercial use disappoints.

* Robusta coffee rose 1.3% to $3,412 a metric ton.

SUGAR

* Raw sugar settled down 0.04 cent, or 0.2%, at 17.46 cents per lb, having ​traded higher earlier in the session.

* Oil prices rose on renewed US-Iran tensions, boosting sugar by tempting cane mills to ramp up output of cane-based biofuel ethanol at the expense of sugar.

* Top EU sugar producer Suedzucker SZUG.DE has raised core 2026/27 earnings expectations on higher demand for biofuels.

* Sugar has mostly headed higher in recent weeks as rain in Brazil disrupted harvesting.

* Crop monitoring service MARS cut its forecast on Monday for sugar beet yield in the European Union.

* White sugar rose 0.3% to $504.10 a ton.

COCOA

* London cocoa settled down 30 pounds, or 0.7%, to $4,175 pounds per ton, having posted a 7% gain last week.

* Ivory Coast has set its 2026/27 farmer price at about $2.12 per kg while Ghana's new price works out at around $3.57 per kg, raising smuggling concerns.

* Dealers noted rainfall in No. 3 grower Ecuador has been well above average of late while rains in Ivory Coast and Ghana have been spotty and more are needed.

* Cocoa arrivals at ports in top grower Ivory Coast stood at 16,000 tons in the week ending September 27, bringing the total since the start of the 2026/27 season to 36,500 tons.

* New York cocoa fell 0.5% to $5,589 a ton.