NEW YORK: Raw sugar prices fell on Friday, halting a three-day rise and trimming weekly gains, on concerns that global supplies of the sweetener might be on the rise despite uncertainties posed by drought in Brazil, the world's largest sugar grower.
Cocoa futures edged lower, touching a two-month bottom, pressured by large West African crops and weak prices for beans auctioned by top producing country Ivory Coast.
Arabica coffee gave up its early strength to close down for a third straight day, with funds unwilling to support the market without more clarity over Brazil's weather, analysts said.
Raw sugar's benchmark second-month position on ICE Futures U.S., July, settled down 0.35 cents, or 2 percent, at 17.45 cents a lb in New York.
It was the sharpest one-day loss since April 17 for raw sugar, although the market still ended the week up 1.5 percent after an earlier three-day gain culminating in Thursday's 4 percent rally.
"The failed mid-week rally is leading to long liquidation," said Sterling Smith, softs futures specialist at Citigroup.
Others said higher sugar output in India and Thailand could add to global supplies.
"There's still plenty of physical sugar that can be brought to the market, and there are demand issues hanging over the market. Notwithstanding the Brazil drought, these things can weigh on prices anytime," said Jack Scoville, a commentator on softs and vice president of The Price Group in Chicago.
On ICE, the front-month position for raw sugar, May, expired on Thursday with a large delivery set against the contract.
ICE data showed a total of 16,185 lots, or 822,236 tonnes, of delivery due against the May contract, most of it top quality sugar from southern Brazil
European traders expressed surprise at the large delivery, saying it raised concerns about whether there would be enough demand for such a consignment in the West or if the sugar would have to be shipped to refineries around the world, as far away as Asia.
"The question now remains whether the sole receiver has or can find homes for all this material," said Nick Penney, senior trader with Sucden Financial Sugar.
London white sugar's most active contract on Liffe, front-month August, settled down $7.90, or 1.7 percent, at $470.50 per tonne.
In U.S. cocoa, ICE's second month, July, finished down $5, or 0.2 percent, at $2,917 a tonne. The session low was $2,905, the lowest since March 3.
London cocoa's second month finished flat at 1,822 pounds a tonne.
Arabica coffee's most-active contract on ICE, second month July, ended down 0.95 cent, or 0.5 percent, at $2.0320 a lb.
Second-month robusta coffee on Liffe closed down $19, or 0.9 percent, at $2,154 a tonne.
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