Raw sugar futures slid to a new 10-month low on Tuesday as speculative selling and ample supplies added pressure, while robusta coffee also weakened. May raw sugar fell 0.27 cent, or 1.63 percent, to 16.27 cents a lb by 1415 GMT, after earlier dipping to 16.17 cents, its lowest since May 2016.
Dealers pointed to sustained selling by speculators, which has intensified the bearish momentum driving the market. "The speculative and fund community seems intent on selling on any recovery, thus playing the long game, that of a looming surplus next season," Sucden Financial's Nick Penney said in a market update. "We expect to see a test of 16 cents soon." Good weather conditions ahead of harvesting in top producer Brazil also weighed on sentiment, adding to expectations for ample supplies. Brazilian producers are also likely to continue to favour sugar over ethanol since the former has proven more profitable, the International Sugar Organization noted in its monthly report on Tuesday. May white sugar fell $6.50, or 1.37 percent, to $466.90 a tonne.
May robusta fell $16, or 0.74 percent, to $2,134 a tonne, with dealers noting the market was stuck in a narrow trading range. Although lower output in top producer Vietnam has fuelled expectations for a global supply crunch, dealers noted nearby supply is not squeezed because farmers have sold forward much of their crop in a bid to lock in higher prices. May arabica coffee also eased 0.40 cent, or 0.29 percent, to $1.3745 per lb, after dipping near an eight-week low of $1.3620 touched last week.
Coffee exports from Honduras, which mainly produces arabica, jumped 62 percent in March, compared with the same month last season, the country's national coffee institute said on Monday. May New York cocoa was down $5, or 0.24 percent, at $2,102 a tonne. May London cocoa fell 2 pounds, or 0.12 percent, to 1,687 pounds a tonne.
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