White sugar prices slip back after recent rally

White sugar futures experienced a significant decline on Monday due to funds reducing their net long position, despite support from India's decision to allow sugar mills to produce ethanol. Robusta coffee and London cocoa prices also decreased, with robusta coffee extending its retreat from last week's peak and cocoa prices influenced by a potential increase in the state-guaranteed price paid to Ghanaian cocoa farmers.

White sugar futures fell sharply on Monday as funds scaled back a net long position while robusta coffee and London cocoa prices were also lower. New York-based raw sugar, arabica coffee and cocoa contracts were closed on Monday due to a U.S. public holiday. SUGAR * October white sugar LSUc1 fell 2.5% to $532.90 a ton by 1302 GMT. * Dealers said the market has lost some ground after rising sharply during the second half of August with funds beginning to trim a net long position. * Dealers said sales by producers in Brazil had also picked up following the recent rally. * The market, however, has derived some support from India’s decision last week to allow sugar mills to use cane juice to produce ethanol in the new marketing year starting November 1. * “This could prolong India’s sugar export curbs, keeping the global market tight,” ING said in a note. COFFEE * November robusta coffee LRCc2 fell 4% to $4,750 a ton, extending markets retreat from last week’s peak of $5,180 which was ...