Sugar Falls As India Exports Surge; Cocoa Drops; Coffee Gains.

Sugar fell for the second time in three days on speculation that increased exports from India, the world’s second-biggest producer, will ease global supply concerns. Cocoa declined, and coffee rose.

India said it would allow an additional 500,000 metric tons of sugar exports after already shipping 2.2 million tons since Oct. 1. Raw-sugar futures in New York have dropped 19 percent this year.

“India has rattled the market,” said Sterling Smith, an analyst at Country Hedging Inc. in St. Paul, Minnesota.

Raw sugar for October delivery fell 0.08 cent, or 0.3 percent, to settle at 26 cents a pound at 2 p.m. on ICE Futures U.S. in New York, narrowing this week’s gain to 2.4 percent.

Production will exceed demand by 7.8 million tons in the season that starts Oct. 1, VM Group and ABN Amro Bank NV said today in their first estimate for the period. Brazil is the leading grower.

Cocoa futures for September delivery fell $23, or 0.8 percent, to $2,964 a ton in New York. The price gained 1.6 percent this week.

Arabica-coffee futures for September delivery gained 1.8 cents, or 0.7 percent, to settle at $2.505 a pound on ICE. The commodity declined 0.8 percent this week.

In London, refined sugar and robusta coffee advanced, and cocoa dropped on NYSE Liffe.

Source : bloomberg.com