Sugar heads lower amid lowered output in Brazil

ening as market players scale back their Brazil output estimates.

Louis Dreyfus, a commodities åUP SURMHFWHG WKDW VXJDU RXWSXW would fall to 29 million tonnes in the centre-south of Brazil, driven by a strong shift to ethanol production in the South American region.

This, it explained, is because Brazilian mills use cane to produce both ethanol and sugar, meaning higher ethanol output comes at the expense of sugar.

Meanwhile, Arabica coffee futures eased after gaining over seven percent by the close of the previous day as July arabica coffee dropped 1.7 percent to $2.1615 per lb.

Market watchers however raised optimism that prices will soon move in a bullish direction as a cold frost is expected to advance over top producer Brazil this week, keeping dealers on edge.

They further recalled that a similar weather condition last year pushed coffee prices to their highest level since 2011.