A turn in the dollar or a generous purchase by Pakistan may represent the best hope for reviving sugar prices, which on Tuesday fell to their lowest in a year.

Raw sugar for July delivery touched 14.41 cents a pound in New York, the lowest for a near-term contract since the start of May last year.

In London, white sugar for August fell nearly 4% to $452.20 a tonne, the weakest for a spot lot since July.

Delivery disappointment 

The declines were blamed in part on data showing that 280,000 tonnes of Brazilian sugar was delivered against the expiring May contract, far more than the 150,000-200,000 tonnes that traders had expected.

High rates of deliveries are viewed as a sign of a dearth of lucrative opportunities for selling elsewhere.

A 1.1% jump in the dollar to its highest in very nearly a year was also cited for sugar's decline. A stronger greenback makes assets denominated in it, such as sugar, more expensive to buyers in other currencies, so tending to weaken market prices.

These negative influences played to factors mitigating against sugar strength, notably chart analysis which showed 100-day moving averages for many New York contracts falling below the 200-day lines.

The cross reversed a move last year which fuelled a more than doubling in prices to February's 29-year high.

"It's another factor encouraging funds to liquidate. Liquidation through disappointment," David Sadler at Sucden Financial Sugar told Agrimoney.com.

Tender moment

However, while some US dealers are forecasting a fall in prices to 13 cents a pound, the market could yet "spin around" if the dollar weakens, Mr Sadler added.

Another catalyst for higher prices could be a successful outcome for a Pakistan tender for 200,000 tonnes of white sugar scheduled for May 8.

"However, it would be disappointing if the tender does not work," he said.

"It would either mean that Pakistan has not got the money, or that its needs are less than had been anticipated, neither of which is positive."