Sugar fell the most in two weeks in London on speculation that India, the world’s second-largest producer, may have more sweetener to export. Indian output may be 26 million metric tons in the year through next September as an extended monsoon lifts yield, increasing the surplus available for exports for the first time in two years, Shree Renuka Sugars Ltd., the nation’s biggest refiner, said last week. That would exceed the 25.5 million tons forecast by the Indian Sugar Mills Association. “Potential exports from India could put a lid on London,” said Naim Beydoun, a broker at Rolle, Switzerland-based, Swiss Sugar Brokers. “This is what is driving London lower,” although for now pressure on prices may be “limited,” he said. White, or refined, sugar for December delivery slid $9.40, or 1.4 percent, to $686.80 a ton at 12:32 p.m. on NYSE Liffe. The contract declined as much as 2.7 percent, the most since Oct. 4. Sugar output from India will likely increase, according to Nick Penney, a senior trader with Sucden Financial Ltd. in London. “At present, India is really the only country able to fill the short-term gap in supplies, so this government’s intentions will be watched closely,” he wrote in a note today. Raw sugar for March delivery lost 0.24 cent, or 0.9 percent, to 26.82 cents a pound on ICE Futures U.S. in New York. Prices fell as low as 26.50 cents, the lowest level since Oct. 12. Cocoa for December delivery rose 1 percent to 1,868 pounds ($2,968) a ton in London. The chocolate ingredient for December delivery slipped 0.1 percent to $2,802 a ton in New York. Robusta coffee for January delivery dropped 0.2 percent to $1,678 a ton in London. Arabica coffee for December delivery lost 0.8 percent to $1.8485 a pound in New York. To contact the reporter on this story: Chris Kay in London at ckay5@bloomberg.net To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

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