(Bloomberg) -- Sugar futures headed for a weekly loss as weather concerns in Brazil and India, the world’s largest producers of the commodity, were offset by a weaker real. 

Dry weather in Brazil is threatening to cut sugar production at a time when the world is increasingly relying on its exports, while a poor start to India’s crucial monsoon is raising concerns for key sugar cane producing regions. Still, “recent weakness of the Brazilian real has tempered upward price momentum,” analysts at Fitch Solutions’ BMI unit said in a note. 

A sliding Brazilian real makes supplies shipped from the South American country relatively cheaper for buyers using other currencies. That also means Brazilian producers have a greater incentive to sell futures in order to hedge their products. 

The most-active raw sugar futures is posed for a weekly drop of almost 2% in New York.

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