LONDON: Raw sugar futures rose on Wednesday, boosted by news that India will allow 500,000 tonnes of duty-free imports, while cocoa and coffee were slightly lower.
SUGAR
May raw sugar was up 0.27 cent, or 1.7 percent, at 16.43 cents a lb by 1421 GMT, rebounding from the prior session's near 11-month low of 16.12 cents.
India will allow imports of 500,000 tonnes of duty-free raw sugar, a government official said on Wednesday, as a drought has cut output below consumption levels for the first time in seven years.
Duty-free imports will be allowed until June 12.
Tropical Research Services said in a note imports could be directed through certain ports, most likely in South India.
TRS said the timing restrictions were advantageous for those carrying raw sugar stocks which had not cleared customs and those with sugar in vessels on the high seas with some flexibility on destination.
"The question now is whether 500,000 tonnes will be enough; we believe that there is potential for further imports," ING said in a daily update.
May white sugar rose $4.10, or 0.9 percent, to $468.40 per tonne.
COCOA
May New York cocoa was down $4, or 0.2 percent, to $2,106 a tonne.
Dealers said bearish sentiment on fundamentals had reasserted itself after the recent short covering rally.
Weather in Ivory Coast remains generally favourable, with port arrivals in the world's top producer remaining well ahead of last season's pace.
July London cocoa fell 10 pounds, or 0.6 percent, to 1,693 pounds a tonne.
COFFEE
May arabica coffee fell a marginal 0.2 cent, or 0.15 percent, to $1.3775 per lb.
A new outbreak of the destructive leaf fungus known as roya could damage the next Honduran coffee harvest if preventative measures are not taken quickly, leading national coffee industry associations said on Tuesday.
May robusta fell $5, or 0.2 percent, to $2,139 a tonne.
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