Sugar corrects after rally; arabicas rise

ICE raw sugar futures fell due to a stronger dollar in early trade on Tuesday, while arabicas gained and cocoa was little changed as dealers focused on the start of harvesting in West Africa. Sugar futures, which had rallied to touch an eight-month peak on Monday, were down 0.40 cent or 1.5 per cent at 26.19 cents a lb at 0804 GMT. US corn futures rose 1.1 per cent on Tuesday and stayed near two-year highs following a frenzied rally in the past two sessions after the United States painted a bleak picture on the supply outlook.

Benchmark ICE raw sugar futures had touched 27.24 cents on Monday, their highest level since early February 2010. New York sugar is expected to retrace to 25.73 cents per lb as a wave "4" correction has started, according to Reuters market analyst Wang Tao. Brazil's main coffee regions were forecast to receive light rain during the week, providing welcome extra moisture while avoiding deluges that could threaten the crop's delicate flowering phase. Robusta coffee edged lower as the harvest got under way in top world producer Vietnam, with further downward pressure from the stronger dollar, which makes dollar-denominated commodities more expensive in terms of other currencies. ICE cocoa was little changed, with the market focused on European and North American third-quarter grinding figures, which are due on Thursday.