Sugar fell to the lowest level since 2010 in New York after Goldman Sachs Group Inc. cut its price forecasts, citing improved weather in leading producer Brazil in the second half of last month. Cocoa retreated.
An end to sugar quotas in the European Union, expected by the EU Council as early as 2017, may promote trade of the sweetener within Africa as Ethiopia and Nigeria plan to raise output, said Ecobank Transnational Ltd.
The global sugar surplus for the 2012-13 season started Oct. 1 will be 38 percent bigger than estimated in November partly because of more supplies from top grower Brazil, the International Sugar Organization said.
Sugar rose in London, rebounding from a second weekly drop, on speculation lower prices will spur demand at a time when millers in leading global producer Brazil may direct more cane to making ethanol. Cocoa fell.