Indications about growing inventories in India tugged down sugar futures on Monday as the sweetener endured its sharpest losses in nearly one month, according to Bloomberg.
Generation of the soft commodity will rise to 25 million metric tons for the 2013-2014 harvest, which trumps July estimates by 5.5 percent, according to the Indian Sugar Mills Association. China and Thailand are forecast to generate strong harvests as well.
"We boosted our China production forecast to over 13 million tons last week, and the Thai crop also seems to be firming for around 11 million tons," states an email authored by director Tom McNeill with sugar and biofuel researcher Green Pool Commodity Specialists Pty. of Australia, according to Bloomberg. "India's output is also expected higher, with raw exports being touted for early in an early harvest."
At 9:13 a.m. on Monday, sugar futures fell 0.34 percent, a 0.0006-cent loss to 0.1768 cents per pound.
Reuters reports processors of the sweetener in the U.S. have offered to sell almost 377,000 tons of sugar to the U.S. Department of Agriculture for the agency to use during its sugar-for-ethanol program.
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