LONDON: Raw sugar futures on ICE eased on Tuesday, weakened by a decline in crude oil and broader macroeconomic concerns, while cocoa and coffee prices also fell.
SUGAR
March raw sugar was down 0.11 cents, or 0.8 percent, at 12.92 cents per lb by 1155 GMT.
Oil prices fell more than 1 percent on Tuesday on signs that an economic slowdown in China was spreading, stoking concerns about global growth and fuel demand.
Lower oil prices can diminish the competitiveness of cane-derived ethanol in Brazil, raising the possibility of mills increasing the amount of cane used to make sugar.
Dealers said broader macroeconomic concerns and the decline in crude oil was outweighing some supportive news on fundamentals, including a diminishing outlook for production in India.
Sugar output in India, the world's biggest consumer of the sweetener, is expected to fall by 2.5 percent in the season that began in October last year, a leading industry body said on Monday.
"The revisions in production have been supportive for the market, especially when you consider that prior to the start of the season some analysts were forecasting that output could total more than 35 million tonnes," ING said in a market note.
March white sugar fell by $5.20, or 1.5 percent, to $349.50 a tonne.
COCOA
May New York cocoa was down $23, or 1 percent, at $2,317 a tonne.
Dealers said an improving crop outlook in top grower Ivory Coast helped to put the market on the defensive.
A mix of strong rains and sunny spells last week in most of Ivory Coast's cocoa regions augurs well for the April-to-September mid-crop's development, farmers said on Monday.
May London cocoa fell 14 pounds, or 0.8 percent, to 1,669 pounds a tonne.
COFFEE
March arabica coffee fell 0.25 cents, or 0.2 percent, to $1.0470 per lb.
March robusta coffee was down $7, or 0.5 percent, at $1,531 a tonne.
Coffee stocks held in European ports fell 1.4 percent in November, European Coffee Federation (ECF) data showed on Tuesday.
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