Raw sugar eases as Brazil sugar production remains strong

Raw sugar futures on ICE fell for the first time in four sessions on Tuesday as the strong pace of production in Brazil kept the market on the defensive while physical demand remained sluggish.
The weak currency in Brazil, the world's biggest sugar and coffee grower, pressured those markets as traders monitored the Senate impeachment trial of suspended President Dilma Rousseff.
Cocoa prices extended losses to four-week lows. Closely watched data from Brazil showed its center-south region crushed 44.8 million tonnes of cane in the first half of August, down from 47.8 million a year earlier, industry group Unica said.
This was toward the low end of expectations.
Dealers noted, however, that the ATR (total recoverable sugar) in the cane was high and there was a shift toward using cane for sugar rather than ethanol production.
These factors meant sugar production in the first half of August actually outpaced that of a year earlier.
"The cane crush was toward the lower end of expectations, but the out-turn was better, and if you look at (sugar) production to date, we are 3.5 million tonnes above last year," one London sugar dealer said.
October raws settled down 0.15 cent, or 0.7 percent, at 20.52 cents per lb.
The International Sugar Organisation, in its first full assessment of the forthcoming 2016-17 season, forecast a global sugar deficit of 7.05 million tonnes.
October white sugar settled down $2.70, or 0.5 percent, at $537.50 per tonne.
Arabica coffee futures were pressured for most of the session by the weak real against the US dollar but turned higher ahead of the settlement window on late-day buying, traders said.
December arabica coffee settled up 0.95 cent, or 0.7 percent, at $1.4605 per lb, rising for the eighth session out of the past nine.
Commerzbank said in a market note that the 2016-17 arabica crop in Brazil had been "surprisingly positive," but price levels had been maintained because of concerns about next year's crop.
November robusta settled down $3, or 0.2 percent, at $1,816 per tonne. Cocoa prices fell to their lowest since August 3, with New York December finishing down $35, or 1.2 percent, at $2,890 per tonne. December London cocoa settled down 66 pounds, or 2.8 percent, at 2,306 pounds per tonne, with the market also reflecting losses in New York on Monday when London-based contracts were shut for a UK public holiday.