The cost of raw sugar SBc1 in March decreased by 1.3% to 27.59 cents per pound after reaching a 12-year peak at 28.14 cents, Nasdaq reports.
Traders said they expect a supply deficit next year as the El Niño weather phenomenon leads to reduced production by leading Asian producers in India and Thailand.
They noted that export delays from Brazil further weighed on the market: in October, shipments were only 2.88 million metric tons compared to 3.16 million tons the previous year.
Prices of white sugar LSUc1 fell by 1.4% to $752.40 per ton in December.
AB Foods, the parent company of British Sugar, said on Tuesday that its sugar division expects a significant increase in profitability next year, thanks to forecasts of a better sugar beet crop in the UK.
Bad weather last year led to a decrease in sugar production in the UK to 0.74 million tons, which is 27% less than the previous season.