March raw sugar futures on ICE rose 0.12 cent, or 0.6 percent, to settle at 18.88 cents a lb as analysts revised upward their global surplus estimates after the latest harvest update from Brazil exceeded expectations. "It had to be expected that with more mills working, the output in recent weeks is much higher than last year," said Commerzbank analyst Michaela Kuhl.
Brazil's centre-south cane, sugar and ethanol production surged in the second half of November due to dry weather, which could result in a slightly larger-than-expected cane crush this year, industry association Unica said on Monday. "We may well see a test back to 19 cents, but from here we expect resistance around this level, and in coming sessions we expect fresh lows," said Thomas Kujawa of brokerage Sucden Financial.
March white sugar on Liffe edged up $2.20, or 0.4 percent, to close at $508.20 per tonne. Iraq has issued a tender to buy at least 50,000 tonnes of white sugar from Brazil, Europe, Thailand and the United Arab Emirates, the Iraqi trade ministry said on Tuesday. Dealers and analysts said expectations for a large 2013 off-year coffee crop in Brazil, where the gap between on- and off-year harvests in the country's biennial crop cycle is narrowing, should keep the market well supplied.
"There is this big Brazilian harvest on the market now, and the International Coffee Organisation (ICO) said supply in the current season will be much higher than in the last season, but that's no new information," said Commerzbank's Kuhl. March arabica coffee futures settled up 2.50 cents, or 1.7 percent, at $1.4950 per lb, after falling more than 4 percent on Monday and touching $1.4635 last week, the lowest level since June 2010. World coffee output in the current 2012/2013 crop will rise 8.4 percent from the previous season to 146 million bags, with arabica production jumping 10.6 percent, the ICO said.
March robusta coffee futures settled up $4 at $1,884 a tonne.
March cocoa on Liffe eased 1 pound to settle at 1,519 pounds ($2,400) per tonne. December's premium over March fell away completely as the December contract tumbled about 5 percent. The spread turned to a discount of 3 pounds, from 75 pounds the previous session in the lead-up to the contract expiry on Wednesday after, indicating a small delivery will be made. It widened to more than 80 pounds last week, its biggest premium in nearly 2-1/2 years. Dealers eyed slower-than-expected arrivals in top producer Ivory Coast. March cocoa on ICE inched up quietly, closing $1 higher at $2,380 a tonne.