The price marks sugar's lowest point in one week. The world's second-largest producer of the commodity is India.
"Prices fell because of expectations of Indian exports coming, and lack of buying in the physical market," Ricardo Scaff, a trader at Rabobank International in New York, told Bloomberg.
March-delivery raw sugar dipped nearly two cents, a 6.1 percent decrease to 30.24 cents per pound at 2 p.m. in New York.
"All evidence in India is that there will be a surplus this year of anywhere from two million" metric tons to five million tons, according to John C. Sheptor, the chief executive officer of Imperial Sugar. He made those comments on Dec. 30.
Sheptor said normal sugar production would ensue in Brazil. Brazil is the globe's top grower of the commodity.
He attributed the dip in prices to funds computerized selling of the commodity.
"Some trading systems are automatic, and once they see the movement, they compound it," he said.
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