Coffee fell in New York before a report from the U.S. Department of Agriculture that may show demand is trailing output. Sugar advanced, and cocoa fell. Global coffee demand was estimated at 133.96 million bags, below production of 135.05 million bags, the USDA said in June in its first estimate for the season that started in October. Since then, USDA reports have maintained crop forecasts for Vietnam and Brazil, the world’s biggest growers, lowered the outlook for Indonesia and raised India’s output estimate. “People don’t want to get caught with any surprises from the USDA figures, so there’s some liquidation in long positions ahead of that,� Sterling Smith, an analyst at Country Hedging in St. Paul, Minnesota, said in a telephone interview. “Warehouse stockpiles are also a little higher, and that may be keeping buyers at bay.� Arabica coffee for March delivery dropped 1.5 percent to $2.1455 a pound at 11:16 a.m. on ICE Futures U.S. in New York, heading for a third straight decline. Before today, prices fell 9.5 percent this year. Inventories monitored by ICE have jumped 19 percent since Nov. 1 to 1.52 million bags. A bag weighs 60 kilograms, or 132 pounds. The USDA production and demand report is scheduled for release at 3:30 p.m. in Washington. Raw-sugar futures for March delivery rose 0.6 percent to 22.88 cents a pound on ICE. Prices declined 29 percent this year through yesterday. Cocoa futures for March delivery fell 1.2 percent to $2,126 a metric ton in New York. Before today, the commodity slumped 29 percent this year. In London futures trading, robusta coffee and cocoa dropped, while refined sugar climbed. To contact the reporters on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net; Joe Richter in New York at jrichter1@bloomberg.net To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

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