LONDON: Raw sugar futures fell to a fresh 10-month low on Thursday, pressured by another round of chart-based selling and concern about ample production in top producer Brazil.
SUGAR
May raw sugar was down 0.25 cents, or 1.5 percent, at 16.87 cents a lb by 1121 GMT, after touching 16.79 cents, its lowest since late May 2016.
Dealers said a weak close in the previous session spurred a bout of aggressive selling in early trading, which then triggered sell stops and accelerated the move down.
Futures were also weighed by fundamentals as Brazil prepares to kick off harvesting and processing, with Commerzbank forecasting Brazilian sugar production in excess of 35 million tons.
"Market observers expect 47 percent of the sugarcane to be turned into sugar in the new processing season, which would marginally surpass even the high figure already achieved in the previous season," the bank said in a note.
Investors continue to monitor the damage done by Cyclone Debbie in Australia for signs of how much cane has been destroyed and how much might be salvaged before crushing begins.
May white sugar also fell $4.60, or 0.95 percent, to $480.70 a tonne, after slipping to $479.10, its weakest since June 2016.
Dealers also noted a rare arbitrage trade on Wednesday between the ICE May containerised and the May break bulk white sugar contracts.
COCOA
May London cocoa was down 15 pounds, or 0.9 percent, at 1,671 pounds a tonne, while May New York cocoa fell $11, or 0.5 percent, to $2,075 a tonne.
This extended losses from the previous session, when both markets slumped.
A weak close triggered another fresh bout of selling, although traders noted volumes remained low.
Futures have rallied recently as more constructive technicals sent speculators scrambling to cover large net long positions in both London and New York.
But dealers said this week's weakness could strengthen the case for lower mid-term prices and trigger further falls.
COFFEE
May arabica coffee fell 0.45 cent, or 0.3 percent, to $1.4125 per lb.
May robusta also fell $12, or 0.6 percent, to $2,159 a tonne.
Vietnam, the world's top robusta producer, is expected to export 100,000 to 130,000 tonnes of coffee in April, traders said on Thursday.
This is lower than in March, with traders noting farmers are reluctant to sell beans as they wait for higher prices.
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