LONDON: Raw sugar futures on ICE were lower on Monday as Indian selling and weak demand helped to trigger a pullback from a recent 4-1/2-year high.

SUGAR

October raw sugar fell by 0.08 cents, or 0.4%, to 19.50 cents per lb by 1300 GMT.

The front month climbed to a peak of 20.37 cents last week for its highest since February 2017.

Dealers said that Indian mills have taken advantage of the recent run-up in prices to make export sales, particularly given indications from India’s government that export subsidies are likely to be withdrawn from October.

“The market has run into a wall of Indian selling,” broker Marex said in market update, adding that further sales could dry up because of a lack of buyers.

October white sugar fell by $6.90, or 1.4%, to $476.60 a tonne.

COFFEE

November robusta coffee rose by $6, or 0.3%, to $1,888 a tonne.

Dealers said the market could continue to consolidate in the short term before potentially resuming its upward trend. Prices have risen by 36% this year.

“The long-term trend favours the upside and we expect prices to remain on-trend,” broker Sucden Financial said in a technical note.

December arabica coffee was down 1.15 cents, or 0.6%, at $1.8035 per lb.

COCOA

December New York cocoa fell by $2, or 0.1%, to $2,565 a tonne.

Dealers said supplies remained ample after a rise in production in Ivory Coast this season.

The market was also keeping a close watch on prospects for the next season, which begins in October, with some expecting there could be a drop in production.

Another week of heavy rains in Ivory Coast’s cocoa growing regions, however, has raised farmers’ expectations for a strong October-to-March main crop, with some already anticipating a harvest as abundant as the previous season.

December London cocoa was down 4 pounds, or 0.2%, at 1,786 pounds a tonne.