Sugar falls on rising export concerns

Brazil's exports will jump 9.4 per cent to 21.6 million tonnes in the current marketing year, the US Department of Agriculture said last month. India, a net importer as recently as 2006, may export 4 million tonnes of sugar in the year ending September 30, according to the Indian Sugar Mills Association.

"We saw an increased amount of origin selling" from Brazil and speculation that India will ship more, said Michael McDougall, a senior vice president for Newedge USA in New York. "It capped the market."

Sugar futures for October delivery fell 0.21 cent, or 1.6 per cent, to 12.74 cents a pound on ICE Futures US, the former New York Board of Trade. The decline was the biggest for a most-active contract since June 4, capping a weekly decline of 2.6 per cent.

Speculators also started to sell after futures did not rise above 13.28 cents, the two-month high reached on June 23, McDougall said.

The market "still seems to be responding to forecasts for a rather good cane crop in Brazil," said Stephen Platt, a commodity analyst at Archer Financial Services .