LONDON: Raw sugar futures on ICE were lower on Wednesday, giving up most of the prior session's gains against the backdrop of ample supplies, while arabica coffee prices also weakened.
October raw sugar fell 0.07 cents, or 0.6%, to 11.97 cents per lb by 1417 GMT.
Dealers said supplies remained ample with production in Brazil remaining strong while they were awaiting confirmation of reports that India will subsidize sugar exports for the third consecutive season in 2020/21.
India may make an announcement before the end of this month, with talk the volume will be around 6 million tonnes.
"High Indian sugar supply on the world market is likely to repeatedly generate (downward) price pressure," Commerzbank said in a market note.
October white sugar fell $3.50, or 1.0%, to $356.90 a tonne.
Dealers said the recent steady decline in the open interest suggested a small delivery was likely against the October contract which expires on Sept. 15.
December arabica coffee fell 2.45 cents, or 1.85%, to $1.2965 per lb.
Dealers said the market had suffered a setback after its recent strong advance which saw prices climb more than 20% from a low of $1.1215 per lb on Aug. 11 to an eight-month peak of $1.3545 on Sept. 4.
"Selling pressure has increased and we could see futures reaffirm support at 126 (cents per lb) once again...We expect momentum to remain on the upside despite indicators suggesting upside momentum is waning," Sucden Financial said in a note.
The market continued to derive support from low exchange stocks which remain around a 20-year low.
November robusta coffee rose $2, or 0.1%, to $1,413 a tonne.
December London cocoa was up 2 pounds, or 0.1%, at 1,783 pounds per tonne.
December New York cocoa rose $3, or 0.1%, at $2,558 a tonne.
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