LONDON, Sept 10 (Reuters): London cocoa futures on ICE fell on Tuesday, erasing most of the prior session's gains, while raw sugar futures slid to a two-week low.
December London cocoa fell 3.9 per cent to 5,275 pounds a metric ton by 1126 GMT, erasing most of Monday's gain of 4.4 per cent.
Prices remained, however, well above last week's 6-1/2 month low of 4,975 pounds.
Dealers said the market remained underpinned by tight stocks following a large global deficit in the 2023/24 season (October/September) with the International Cocoa Organization recently raising its forecast to 462,000 metric tons from 439,000 tons seen previously.
"The buffer for another poor harvest has shrunk considerably, which should keep the cocoa price at a high level," Commerzbank said in a note.
December New York cocoa fell 2.3 per cent to $7,301 a ton.
SUGAR
October raw sugar fell 1.2 per cent to 18.60 cents per lb after setting a two-week low of 18.59 cents.
Dealers noted index funds had begun to roll positions out of October, which expires on September 30, into March.
An improving crop outlook in India, following strong monsoon rains, remained a bearish influence.
A survey of analysts conducted by S&P Global Commodity Insights had a consensus for sugar production in the period of 3.26 million tons, down 6 per cent year-on-year. October white sugar was down 0.8 per cent at $521.90 a ton.
COFFEE
November robusta coffee rose 1.4 per cent to $4,958 a ton with some Brazilian farmers delaying sales, expecting prices to rise further.
December arabica coffee rose 0.35 per cent to $2.4625 per lb.
