June 29 (Bloomberg) -- Sugar futures fell the most in a month as investors grew concerned that China's economy is slowing and that a price rally to a two-month high was overdone. The Conference Board corrected its April gauge for the outlook on China's economy, saying it rose by the smallest amount since November. Hedge-fund managers and other large speculators cut their net-long positions, or bets that futures will rise, by 0.2 percent in the week ended June 22 from a week earlier, government data showed. "Some funds are liquidating," said Boyd Cruel, a senior analyst at Vision Financial Markets in Chicago. "News from China is dragging the entire pack down." Raw sugar for October delivery slumped 0.6 cent, or 3.8 percent, to 15.22 cents a pound on ICE Futures U.S. at 10:34 a.m. in New York. A close at this price would be the biggest fall since May 28. Yesterday, the contract declined 3.5 percent. On the Liffe exchange in London, white-sugar futures for October delivery plunged $22.40, or 4.7 percent to $457 a ton. The most-active contract fell 5.1 percent last week. The Reuters/Jefferies CRB Index of 19 raw materials declined 2 percent to 258.34 in New York today, the most since June 4. Egypt's state-run Sugar and Integrated Industries Co. canceled a tender for 100,000 metric tons of raw sugar because of high prices, Ramadan Suleiman, a purchasing manager at the company, said yesterday. The supply picture is mixed. India, the largest sugar user, may produce as much as 23 million metric tons in the year starting October 1, up 22 percent from an estimated 18.8 million this season, a government official told reporters in New Delhi today. Output in Thailand, the second-largest exporter, may skid 13 percent in the next crop year as delayed rain and subsequent floods will likely damage cane crops, the Office of the Cane and Sugar Board said last week. "The market is torn between negative news regarding the progression of the monsoon and bad prospects for the Thai production on the one hand, and reports about recalled purchase intentions" such as the move by Egypt, Eugen Weinberg, an analyst with Commerzbank AG in Frankfurt, wrote in an e-mailed report today. --With assistance from Ola Galal in Cairo and Thomas Kutty Abraham in Mumbai. Editors: Michael Arndt, Patrick McKiernan

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