NEW YORK/LONDON: Sugar futures on ICE plummeted 3.5 percent Tuesday after a Brazilian federal judge suspended a fuel tax increase and data from the country's cane industry group Unica showed bearish sugar production figures.
SUGAR
October raw sugar settled down 0.5 cent, or 3.47 percent, at 13.9 cents per lb.
Brazil's center-south region produced 3.101 million tonnes of sugar in the first half of July, Unica said on Tuesday.
Dealers said the report was mildly bearish. An S&P Global Platts survey of analysts had put production at 3.073 million.
Prices declined further after a Brazilian federal judge suspended a large fuel tax increase.
"It contributed to the move down, as did the Unica numbers, which were big," said a US trader, regarding the decision by the judge. "Today's news was bearish. It created a rush for the door."
"Perhaps this news and the implications it may have in regards to ethanol also contributed," another US trader said.
Last week, sugar prices rallied after the tax increase was announced, as dealers saw it putting more cane into ethanol, which they said would be more competitively priced with the increase.
October white sugar closed down $11.30, or 2.87 percent, at $382 per tonne.
COCOA
September New York cocoa settled down $42, or 2.13 percent, at $1,926 per tonne.
Dealers noted demand had yet to revive significantly despite a sharp drop in prices since the beginning of last year.
"In the first half-year, Lindt & Spruengli was once again confronted with stagnating or slow-growing chocolate markets, especially in its most important market, North America, and consumer sentiment that remained largely restrained," the Swiss chocolate maker said.
September London cocoa settled down 33 pounds, or 2.12 percent, at 1,521 pounds per tonne.
COFFEE
September arabica coffee settled down 1.95 cent, or 1.47 percent, at $1.306 per lb, extending losses for the second straight day on chart-based selling from last week's two-month high.
"The market is trying to stabilize now back in the area of that 20-day moving average following a dip to $1.2975. I think there should be an effort by both sides to defend the $1.30 level," the second US trader said.
September robusta coffee settled down $3, or 0.14 percent, at $2,100 per tonne.
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