Sugar eases on Brazil data as coffee firm

ICE sugar futures eased yesterday, underpinned by another downward forecast for top producer Brazil's sugar crop, while arabicas edged up with activity centred on position rolling. Cocoa futures firmed, with potential upside in prices capped by ample global supplies in 2010/11. ICE October raw sugar futures were supported by a downward revision in Unica's forecast for centre-south Brazil cane output to 31.57 million tonnes, down 2.5 per cent from its July estimate of 32.38 million tonnes. "The Unica data is a support rather than a driver for the market," said Macquarie analyst Kona Haque. Article continues below "Unica's numbers are in line with Macquarie's internal expectations for Brazilian sugar output." Analyst Datagro on Tuesday cut its forecast for sugar production in centre-south Brazil to 31.85 million tonnes and warned the outlook could worsen after a recent frost. A combination of weather factors and aging cane led analysts to revise down their cane output forecasts. The Unica and Datagro forecasts were broadly in line with other recent estimates with consultancy Kingsman in late July projecting 31.87 million tonnes of sugar while Canaplan saw an even steeper decline to around 30 million tonnes. October raw sugar futures on ICE were down 0.48 cent or 1.7 per cent at 27.60 cents at 1051 GMT. Raw sugar futures have fallen by around 12 per cent since hitting a contract high of 31.68 cents a pound last month on Brazil crop concerns. October white sugar on Liffe fell $17.70 or 2.4 per cent to $732 per tonne.