Cocoa, Sugar Declines as Coffee Continue Rallying
Cocoa declined on Tuesday after rallying for six days on speculations that there will be a supply shortfall.
Cocoa for March delivery dropped by 0.8 percent, or 11 pounds, to 1,385 pounds ($2,748) a metric ton, after an earlier gain to 1,421 pounds on the Liffe exchange in London.
A London-based Cocoa Organization projected global cocoa demand to exceed production by 51,000 metric tons this season.
Global cocoa grindings were forecasted to increase by 2.4 percent to 3.73 million tons in the season ending 2008, and production will increase by 10 percent to 1.54 million tons.
Robusta coffee for May delivery increased by 0.1 percent, or $2, to $2,752 a ton.
White or refined sugar for May delivery dropped by 3.2 percent, or $12.50, to $384.50 a ton.
The Australian Bureau of Agriculture and Resource Economics said in a report that sugar production will be about 5 million in 2008-09, higher than 4.9 million tons last year.
Australia is the world's third-largest sugar exporter.
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