US MIDDAY: sugar erases gains

Sugar futures erased earlier gains, and coffee and cocoa extended losses on Tuesday as the dollar strengthened. ICE front-month raw sugar futures had gained almost 3 percent in a short-covering rally in early trade. They later sank into negative territory as the dollar rose against a basket of currencies.
ICE raw sugar was down 0.45 cent or 1.7 percent to 26.58 cents a lb in volatile dealings at 1543 GMT. ICE March arabicas stood at $2.0130 per lb, down 5.95 cent or 2.9 percent at 1535 GMT, below the 13-1/2-year high of $2.2145 per lb touched on November 10. ICE second month cocoa was down $42 or 1.5 percent at $2,780 per tonne at 1537 GMT.