LONDON: Raw sugar futures on ICE fell to their lowest level in more than five weeks on Tuesday as the market waited to see if forecast and much-needed rains in top producer Brazil would materialise in the next few days.
SUGAR
March raw sugar was down 0.37 cents, or 2.6 percent, at 13.98 cents per lb by 1347 GMT after dipping to a low of 13.90 cents, the weakest price for the second position since Aug. 17.
Dealers said forecasts for crop-friendly rains in Brazil had triggered a speculative sell-off in the past few days.
"Rain is now on the horizon for the end of the week, so people's concerns about drought in Brazil may be relieved if we get three or four days of decent rain," one sugar trader said.
Producer selling and the prospect of a substantial global surplus in the 2017/18 season had also added to downward pressure on prices.
The October contract was down 0.4 cents, or 2.9 percent, at 13.34 cents ahead of its expiry on Friday, with dealers noting appetite to take delivery seemed subdued.
December white sugar was down by $5.90, or 1.6 percent, at $356.30 a tonne.
Edesia Asset Management, a unit of commodity trading house Louis Dreyfus Holding and a significant participant in sugar futures trading, said on Tuesday that it would wind down all fund management activities by Dec. 31.
COFFEE
December arabica coffee was up 1 cent, or 0.8 percent, at $1.3255 per lb, edging away from a two-week low of $1.3135 set on Monday.
Dealers said the prospect of much-needed rains in Brazil had helped to drive prices down during the past few days.
Most Brazil coffee areas are suffering from a long dry spell that has caused trees to lose leaves and could result in poor flowering.
"If the crop potential is to be achieved, the forecast rains ... need to materialise," Commerzbank said in a market note.
November robusta coffee fell $3, or 0.15 percent, to $2,003 a tonne. COCOA
December New York cocoa rose $11, or 0.6 percent, to $1,983 a tonne as the market continued to lack a clear trend ahead of next month's start of the main crop season in top grower Ivory Coast.
December London cocoa was up 7 pounds, or 0.5 percent, at 1,477 pounds a tonne.
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