LONDON: White sugar futures on ICE were lower on Wednesday, easing back after reaching a near four-year peak in the prior session, while cocoa prices also fell.

March white sugar fell $2.20, or 0.5%, to $461.40 a tonne by 1448 GMT.

The front-month contract had climbed to a peak of $470.40 on Tuesday, its highest since April 2017.

Dealers said the market was consolidating after a recent run-up but it remained underpinned by nearby supply tightness.

Commerzbank said in a market note that robust physical demand coupled with a shortage of containers in countries such as India had created tightness in the physical market.

“This is prompting customers who need sugar urgently to seek it on the exchange. Furthermore, production is disappointing in regions like Thailand and the EU, which are conventional white sugar suppliers,” the bank added.

March raw sugar fell 0.19 cents, or 1.2%, to 16.10 cents per lb. March New York cocoa was down $50, or 1.9%, at $2,549 a tonne, with the front month’s premium also weakening to around $86 from about $100 at the close on Tuesday.

March London cocoa fell 21 pounds, or 1.2%, to 1,742 pounds a tonne.

March arabica coffee fell 0.25 cents, or 0.2%, to $1.2315 per lb. March robusta coffee was up $7, or 0.5%, at $1,306 a tonne.—Reuters