LONDON: Raw sugar futures on ICE were lower on Wednesday as favourable crop weather in top producer Brazil heightened expectations that global production is set to climb and outstrip demand in the upcoming 2017/18 season.
SUGAR
July raw sugar fell 0.14 cents, or 0.9 percent, to 15.74 cents per lb by 1142 GMT.
Dealers said they were also keeping a close watch on the sugar trade talks between the United States and Mexico which are "at an impasse" according to US Commerce Secretary Wilbur Ross.
"We retain interest in how the relationship and situation between the two countries develops in the sugar industry, as any Mexican exports no longer destined for the US will have to be placed somewhere else in the world market," said INTL FCStone analyst Darren Stetzel in a market note.
August white sugar was down $3.40 at $449.20 a tonne.
A Brazilian sugar and ethanol mill in which Cargill has a majority stake has suspended interest and principal payments on 700 million reais ($220 million) of loans during a shareholder dispute over a capital injection, five people familiar with the matter said on Tuesday.
COCOA
Cocoa prices were sliding towards multi-year lows set a couple of weeks ago with the market weighed by excess supplies.
July London cocoa fell 19 pounds, or 1.3 percent, to 1,395 pounds a tonne, drifting back down towards a five-year low of 1,372 pounds set on April 20.
Dealers said the strong pace of port arrivals in top grower Ivory Coast was helping to keep the market on the defensive.
July New York cocoa fell $21, or 1.2 percent, to $1,784 a tonne. The second month had slumped to a low of $1,756 on April 20, its weakest since August 2007.
COFFEE
Robusta coffee futures were higher with July up $24, or 1.2 percent, at $2,019 a tonne.
Dealers said the market was consolidating after a sharp recent setback driven by fund long liquidation.
July arabica coffee rose 0.05 cent or 0.04 percent to $1.3630 per lb.
Brazil exported 1.93 million 60-kg bags of coffee in April, down from 2.23 million bags in the same month last year, according to trade ministry data.
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