LONDON: Sugar, coffee and cocoa futures on ICE were lower on Wednesday dragged down by a broad-based decline in commodity markets linked to fears about rising inflation that may prompt the US Federal Reserve to raise interest rates.

SUGAR

July raw sugar fell by 0.21 cent, or 1.2%, to 17.00 cents per lb by 1358 GMT.

Dealers said the market remained underpinned by adverse weather and lower acreage in top exporter Brazil where some farmers have switched to growing corn and soybeans.

The Brazilian government expects sugar production from the main center-south region to fall 6.4% compared with the previous crop to 35.8 million tonnes, saying insufficient rains hit sugar cane development.

Consultancy Datagro also said on Wednesday that Brazilian sugar and ethanol plants are likely to temporarily reduce sugar production volumes to increase ethanol output and address increasing demand and high prices for the biofuel in the country.

August white sugar fell by $4, or 0.9%, to $453.70 a tonne.

COFFEE

July arabica coffee was down 2.45 cents, or 1.6%, at $1.5035 per lb.

Dealers said the market was monitoring the situation in Colombia where anti-government protests have disrupted coffee exports.

A drop in arabica production in Brazil this year also remained a background supportive factor with global supplies expected to tighten over the next few months.

July robusta coffee fell by $21, or 1.4%, to $1,494 a tonne.

COCOA

July London cocoa fell by 37 pounds, or 2.2%, to 1,650 pounds a tonne with a stronger pound versus the dollar adding to downward pressure on prices.

July New York cocoa fell by $41, or 1.6%, to $2,463 a tonne.