LONDON: Raw sugar futures edged slightly higher on Wednesday, with the focus on a major Indian trade body cutting its production forecast.
March raws were up 0.07 cents, or 0.3 percent, at 20.65 cents per lb at 1255 GMT.
The front month rose to a peak of 20.99 cents on Tuesday, but met resistance around 21 cents. Drought has curtailed production in the western state of Maharashtra and the southern state of Karnataka, boosting domestic prices and raising the prospect of Indian imports.
"The market chat continues to focus on India as it seems it will undoubtedly be the source of the "story" that stuns either bull or bear expectations and will break us out of this almost month long 20c /21c range," Tom Kujawa, co-head of the softs department at Sucden Financial said.
India's sugar production may fall to 21.3 million tonnes for the 2016/17 crop year, down from a previous forecast of 23.4 million and the lowest in seven years, the Indian Sugar Mills Association said on Wednesday.
On Tuesday, a government official said the country could produce 22.5 million tonnes of sugar during the 2016/17 season that started on Oct. 1. But traders said production could fall below 20.5 million tonnes in the current season.
"Overall, it seems we are more likely to break out to the upside but as always timings are the key," Kujawa said, adding the market appeared range-bound for now.
March white sugar was up $2.00 or 0.4 percent at $542.90 per tonne.
Robusta coffee futures were lower as the market extended its gradual retreat from last week's 4-1/2 year high.
March robusta coffee was down $7 or 0.3 percent at $2,205 a tonne.
The second position had peaked at $2,268 on Friday, its highest since May 2012.
Dealers said activity in top robusta producer Vietnam had already begun to slow ahead of the Tet, or Lunar New Year, holiday which runs from Jan. 26 to Feb. 1 this year.
March arabica coffee was down 0.60 cents or 0.4 percent at $1.5175 per lb.
London cocoa futures were slightly lower as sterling strengthen against the dollar. March cocoa in London was down 3 pounds, or 0.2 percent, at 1,754 pounds a tonne.
March New York cocoa rose $2 to $2,203 a tonne.
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