March raw sugar futures on ICE eased 0.28 cent, or 1.4 percent, to 19.13 cents a lb by 12:07 pm EDT (1707 GMT). The contract rose on Monday after dipping last week to 18.31 cents, the lowest level for the benchmark front month since August 2010. "I don't see any reason why the market should continue its recovery," said Stefan Uhlenbrock, an analyst at F.O. Licht. "There's lots of sugar around and more to come, and there's no factor in play in my view that could support a sustainable rise in prices."
Societe Generale said the market faced resistance at 19.45-19.55 cents per lb, with the next resistance level seen at 19.95-20.10 cents per lb. The spot contract left a technical gap between 19.06 cents and 19.14 cents in the two previous sessions, creating pressure, dealers said. March white sugar on Liffe fell $5.20, or 1 percent, to $515.60 per tonne. Dealers said top producer Brazil's current centre-south crop may exceed 34 million tonnes after favourable weather aided the tail of the harvest. They said prospects for the next crop were also positive.
"The market is already talking about another record figure of nearly 37 million tons of sugar from Centre-South. In this situation, the sugar price is unlikely to make any great leaps upward," Commerzbank said in a daily commodities note. March arabica coffee futures on ICE inched down 0.60 cent, or 0.4 percent, at $1.4535 per lb. The contract remained above last week's two-and-a-half-year low of $1.4220 but continued its downtrend.
Dealers and analysts noted that the market was well supplied following Brazil's large on-year crop in its biennial cycle and increased production from some Central American countries. March robusta coffee futures were up $11, or 0.6 percent, at $1,852 a tonne. Dealers monitored the narrowing of January's premium to March, which traded at around $22 after widening to more than $50 in recent sessions.
Domestic coffee prices in Vietnam, the world's largest robusta producer, fell to the lowest level in more than 10 months on ample supplies, with the harvest expected to end this month, a little earlier than usual, traders said on Tuesday. May cocoa on Liffe closed down 21 pounds, or 1.4 percent, at 1,511 pounds a tonne. March cocoa futures on ICE settled down $28, or 1.2 percent, at $2,397 a tonne.