LONDON: Raw sugar futures fell on Tuesday amid weaker chart signals and waning concerns about adverse weather in top grower Brazil, while New York cocoa rose to its highest in more than two months in light volume.
SUGAR
July raw sugar was down 0.12 cents, or 0.86 percent, at 13.90 cents per lb by 1058 GMT, after slipping to a session low of 13.81.
Dealers said weak technicals undermined the market, after a failed rally in the previous session that saw prices fail to hold above the key 14.00 cent level and the short-term moving average.
Participants said worries about a cold snap in Brazil's key centre-south cane region were also fading, further eroding sentiment and fuelling concerns about ample global supplies.
"Even if you have a slight crop issue in Brazil, it's not going to dent the size of the surplus brewing on the horizon," said one dealer.
The market awaited data from Brazil's UNICA on Tuesday, with an S&P Platts survey showing analysts expect that some 5.4 days of crushing were lost to rains in the second half of May, up from about 5 days in the same period last year.
Brazil's total centre-south crush so far is expected to be 9 percent below last year, with 46.17 percent of cane allocated towards sugar in the second half of May, from 41.77 percent in the same time last year.
August white sugar fell in tandem with raw sugar, easing $2.40, or 0.59 percent, to $407.80 a tonne, after slipping to its weakest since March 2016.
COCOA
Cocoa futures rose in light volume, lifted by a positive technical close after prices rallied sharply in the previous session.
September New York cocoa rose $11, or 0.53 percent, to $2,099 a tonne, after hitting $2,112, its highest since April 6.
Prices were supported by the dollar, which softened as most investors stayed on the sidelines ahead of a US Federal Reserve meeting.
Position rolling out of the July contract and into the September contract ahead of first notice day on June 19 dominated activity in New York.
September London cocoa was unchanged at 1,663 pounds a tonne, after touching 1,676 pounds, its highest since April 6.
COFFEE
July arabica coffee eased 0.05 cents, or 0.04 percent, to $1.2755 per lb.
July robusta also fell $6, or 0.30 percent, to$2,024 a tonne.
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