NEW YORK/LONDON: ICE raw sugar slid to a three-year low on Tuesday, under pressure from large crops in top producer Brazil and a weakening Brazilian real, while Liffe white sugar futures edged up as Mexico delivery issues underpinned spot prices.
ICE arabica fell, hovering near a more than three-year low, and cocoa futures gained on renewed investor buying.
July raw sugar on ICE Futures US fell 0.05 cent, or 0.3 percent, to settle at 16.38 cents a lb, after touching a three-year low of 16.32 cents.
The weakening Brazilian currency increased the incentive for Brazilian producers to sell dollar-denominated sugar and coffee.
"The real doesn't want to firm up, and it looks like some Brazilian selling and some fund selling, probably a combination," said Michael McDougall, senior director of the Brazil desk for Newedge in New York.
Prices also came under pressure as improving weather in Brazil was expected to aid harvest progress of the expected record crop.
"Demand is not really picking up and the global surplus is growing on the back of decent weather," a European analyst said.
August white sugar on Liffe gained 80 cents, or 0.2 percent, to close at $476.90 a tonne.
The August contract's premium over October <LSU-1=R> widened to more than $8, from around $5 a week ago, as the amount of Mexican sugar for delivery against the front month was likely to be less than expected due to bag quality issues, dealers and analysts said.
<Center><b><i>Copyright Reuters, 2013</b></i><br></center>
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