Raw sugar slid to a three-month low in New York, extending a slump from a 29-year high last month, as output increased in Brazil and India, the top producers.

India's sugar output rose 5.5 percent in the five months ended Feb. 28 as late rains improved cane yields in the state of Maharashtra, the Asian nation's biggest producer of the sweetener, Vinay Kumar, the managing director of National Federation of Cooperative Sugar Factories Ltd., said today.

"It's basically becoming clearer that the supply situation is improving in India and also in Brazil," said Hank King, the managing director of Trendphonic Futures Trading LLC in Chicago. "People buy on rumors and sell on facts."

Eoin Treacy's view Sugar peaked in January near 30¢, with a large downside weekly key reversal. It has now fallen back through the previous range, triggering an MDL stop and is testing the 21¢ level which was an area of support from August. Prices are overextended in the short-term so there is potential for a relief rally but the strongest likelihood remains that prices have peaked for the medium term.