(Bloomberg) -- Raw sugar futures fell, erasing earlier gains after a report showed stronger-than-expected production in Brazil.

Sugar production in Brazil’s Center-South region was 3.1 million metric tons in the first half of June, about 22% higher than the prior year, Brazilian industry group Unica reported Friday.

That beat expectations from analysts, who expected 2.92 million tons of sugar output, according to a survey from S&P Global Commodity Insights. Millers also topped analyst expectations, crushing 49 million tons of cane, almost 21% more than last year.

On the flip side, the sugar content in cane was weak. Unica said development of the crop was compromised by dry weather that damaged the quality of the cane.

“Despite the advance in crushing compared to the same period last year, the movement should be observed with caution, as operations were hampered by weather conditions in June 2023,” said StoneX’s Luca Monteiro.

In other softs, cocoa futures in New York rose as much as 5.8%, snapping a six-session selloff spurred by a brighter weather outlook for crops in West Africa. Prices, however, are still set to end the quarter at a loss for the first time in two years.

--With assistance from Mumbi Gitau and Celia Bergin.

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