LONDON: White sugar futures on ICE fell further on Wednesday, touching their lowest in more than 2-1/2 years as ample supplies from India and Thailand weighed on sentiment, while cocoa edged up.
SUGAR
August white sugar was down $2.10, or 0.6 percent, at $333.90 by 1108 GMT, after falling to a fresh low of $332.30, the weakest for the second position since August 2015.
Dealers said the market remained pressured by ample global supplies, with particular focus on India and Thailand.
India is mulling a subsidy in a bid to make sugar exports viable, which would add pressure to a global market already grappling with excess supplies.
Dealers said Indian domestic prices have recently come down, with one dealer pegging them at roughly $100 above the world market.
Stronger-than-expected production in Thailand was also adding to the bearish mood, dealers said.
"Between those two countries, they've found a whole pile of sugar," said one dealer. "You can't look at this any other way than as bearish."
May white sugar, which expires on Friday, rose $1.80, or 0.5 percent, to $347.40 per tonne.
Dealers said the strengthening May/August spread signalled sellers were hesitant to deliver against the contract at current prices.
Reduced availability of white sugar from Central America and the European Union has also supported the premium in recent weeks.
May raw sugar fell 0.12, or 1 percent, to 12.01 cents per lb.
Dealers said prices were pressured by the supply overhang and by continued weakness in the Brazilian currency, which encourages producer selling.
COCOA
July London cocoa climbed 7 pounds, or 0.4 percent, to 1,747 pounds a tonne.
July New York cocoa also rose $6, or 0.2 percent, to $2,537 a tonne.
Both markets remained within their recent trading ranges, with dealers pointing to technical signals and speculative activity as key drivers.
There were signs of recovering demand, however, as Swiss chocolate maker Barry Callebaut reported sales rose 8 percent in the six months to February, compared to global growth of 2.5 percent.
COFFEE
May arabica coffee was down 0.30 cents, or 0.3 percent, at $1.1730 per lb.
Brazilian green coffee exports fell in March to the lowest level in six years for that month, exporters association Cecaf? reported on Tuesday.
May robusta coffee was up $3, or 0.2 percent, at $1,739 a tonne.
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