Sugar prices fell sharply on Tuesday on news India has allowed 500,000 tonnes of unrestricted exports, while arabica coffee declined further from a recent 34-year peak and appeared poised to move lower. Cocoa futures were firm, with the US market feeling a lift from the strong pound against the greenback. Overall dealings were light, with volume in US markets down roughly 35 percent from the 30-day average, preliminary Thomson Reuters data showed.
May raw sugar on ICE lost 0.32 cent to finish at 27.16 cents per lb. Coffee futures also slid, weighed by chart-based sales after the benchmark May arabica contract failed to breach resistance at $2.83 per lb, on Monday, dealers said. May arabica coffee on ICE tumbled 3.55 cents to finish at $2.7345 per lb. New York coffee is expected to fall to $2.64 per lb based on its wave pattern and a Fibonacci ratio analysis, Reuters market analyst Wang Tao said.
Cocoa futures on ICE were higher on industry buying and the strong pound, beginning to correct higher after falling 18 percent from a 32-year high at $3,775 per tonne earlier this month. May cocoa on ICE rose $74 or 2.3 percent to finish at $3,263 per tonne.