Raw sugar futures on ICE fell sharply on Wednesday as escalating US-China tensions over Hong Kong weighed heavily on oil,
offsetting optimism about the reopening of the world economy.
Falling energy prices encourage cane mills in Brazil to ramp up sugar output at the expense of cane-based ethanol fuel.
July raw sugar slipped 0.3 cent, or 2.4%, to 10.79 cents per lb by 1458 GMT.
Dealers said on balance they expect sugar to edge up as the United States, Asia and Europe start to ease coronavirus lockdowns, but noted risks associated with Brazil.
The world's top sugar producer has become one of the centres of the coronavirus pandemic, a move that could further hammer ethanol demand and weaken the Brazilian real.
A weak real encourages Brazilian exporters to sell dollar-priced sugar by raising its value in local currency terms.
Germany's second largest sugar refiner Nordzucker said it hoped to return to profit in its new financial year as easing lockdowns stabilise sugar prices and demand.
August white sugar was down $7, or 1.9%, at $370 a tonne, having earlier hit its highest since early March.
July New York cocoa was down $40, or 1.7%, at $2,354 a tonne.
Concerns about weakening demand are weighing on cocoa
even as output from top producer Ivory Coast falls.
Ivory Coast's cocoa products exports from October to April fell about 14% year-on-year to 222,782 tonnes, data showed.
July London cocoa rose 19 pound, or 1%, to 1,924 pounds a tonne?, having hit its lowest in more than a month earlier.
July arabica coffee fell 2.8 cents, or 2.7% at $1.0230 per lb. Some traders are worried about weakening Arabica demand just as Brazil is expecting a near-record crop this season.
July robusta coffee was down $1, or 0.1%, at $1,218 a tonne, having touched its highest since late March on Tuesday.
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