Sugar fell the most in seven weeks on signs that production will be better than expected in Brazil, the world’s biggest grower. Coffee and cocoa retreated. Unica, an industry group, yesterday cut its forecast for output in Brazil’s Center South by 2.2 million metric tons to 32.4 million. Analysts were expecting a reduction of “at least 3 million tons” because of lower yields, said Jack Scoville, a vice president for Price Futures Group Inc. Before today, prices jumped 24 percent in the past month on supply concerns. “The production estimates show the situation is not as bad as people were expecting,” Scoville said in a telephone interview from Chicago. “Production in other parts of the world seems strong. Bears keep pointing to increased supplies around the world as a reason to see futures move lower.” Raw sugar for October delivery dropped 0.97 cent, or 3.2 percent, to 29.27 cents a pound at 10:45 a.m. on ICE Futures U.S. in New York. A close that price would be the biggest loss since May 23. Yesterday, the price touched a five-month high of 31.33 cents before Unica’s report. Unica’s numbers “fell within expectations,” Paul Deane, an economist at Australia and New Zealand Banking Group Ltd. in Melbourne, said in a report e-mailed today. Arabica-coffee futures for September delivery slid 2.75 cents, or 1 percent, to $2.612 a pound on ICE. Cocoa futures for September delivery dropped $32, or 1 percent, to $3,138 a ton in New York. In London, refined sugar, cocoa and robusta coffee declined on NYSE Liffe. To contact the reporters on this story: Isis Almeida in London at ialmeida3@bloomberg.net; Debarati Roy in New York at droy5@bloomberg.net. To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net.

Source