Prices also got support from mounting expectations that data from Brazilian cane industry group Unica set to be released later this week would show a significant drop in sugar output in Brazil, dealers said. "Even though the focus has been on Thailand and India, Brazil is the largest exporter by far," said Michael McDougall, managing director at Paragon Global Markets.
Although near-term sugar supplies in India and Thailand are plentiful, dealers are monitoring a possible drop in future production due to dry weather.
Meanwhile, in Brazil, cane mills continue to prioritize ethanol production.
With ethanol parity around 14.45 cents, "there is no incentive for Brazilian mills to produce sugar unless they have export contracts. They want to produce as much ethanol as possible," McDougall said.
Brazil's sugar line-up, or the amount of the sweetener to be loaded at local ports, plunged in July to the lowest in at least five years, as mills refrain from sugar export business amid declining global prices.
October white sugar settled up $3.20, or 1%, at $318.30 per tonne.
September New York cocoa settled down $57, or 2.3%, at $2,475 per tonne, largely erasing the previous session's gains.
Market participants remain focused on how top growers Ivory Coast and Ghana will implement a new pricing mechanism for the 2020/2021 season.
September London cocoa settled down 13 pounds, or 0.7%, to 1,853 pounds a tonne.
September arabica coffee settled down 2.8 cent, or 2.7%, at $1.023 per lb after dipping to a one-month low of $1.0215.
This was the third consecutive negative finish, with the market under renewed pressure after a frost scare in top-grower Brazil earlier this month did not damage crops as much as some had feared. Prices were also pressured by a weaker Brazilian real, which can encourage producer selling of dollar-denominated commodities like coffee. September robusta coffee settled down $24, or 1.7%, at $1,369 per tonne.