(Recasts, updates prices; adds comment, NEW YORK dateline)
NEW YORK/LONDON, Sept 7 (Reuters) - Raw sugar futures on ICE dropped on Thursday as an expected rebound in production in top-consumer India offset support from ethanol-boosting tax policy in Brazil.
* October raw sugar settled down 0.26 cent, or 1.8 percent, at 14.03 cents per lb.
* Expectations for India’s production to rebound in 2017/18 kept prices lower, said Shawn Hackett, president of Hackett Financial Advisors in Boca Raton, Florida.
* The International Sugar Organization estimated India’s 2017/18 output to rise by about 22 percent to 25 million tonnes in the year beginning October.
* That offset the implementation a new Brazilian tax policy promoting ethanol, he said. The new policy went into effect this month.
* Market participants were monitoring Hurricane Irma’s rip through Florida, a key U.S. sugarcane growing region.
* October white sugar settled down $4, or 1.1 percent, at $376.60 per tonne.
* November robusta coffee settled up $5, or 0.3 percent, at $1,950 per tonne.
* The market consolidated after prices slipped in the previous session to the weakest since May 25.
* December arabica coffee settled up 1.25 cent, or 0.98 percent, at $1.2915 per lb.
* Market participants lowered expectations for the current crop potential, worried that a premature flowering in key Brazilian growing areas and dry weather would produce fewer acceptable beans, boosting prices, said Hackett.
* “If the dry weather does become a thing, we’re building a good base for (prices) to come off of later,” said Jack Scoville, vice president Chicago-based Price Futures Group.
* December London cocoa settled down 18 pounds, or 1.2 percent, at 1,472 pounds per tonne, with a stronger British pound helping to keep a lid on the market.
* The stronger Sterling encourages buying of dollar-traded New York cocoa over its British counterpart.
* December New York cocoa settled down $11, or 0.6 percent, at $1,906 per tonne.
* Huge crops in Ivory Coast and Ghana this year are keeping the market on the defensive.
* Rains are expected to enter Ghana and top-grower Ivory Coast in the coming days, Kenny Miller of Gaithersburg, Maryland-based MDA Weather Services wrote in a note.
* “But conditions should remain favorable for early main crop harvesting overall,” Miller said.
Reporting by Renita D. Young in New York, Ana Ionova and Nigel Hunt in London; Editing by Alexander Smith and Richard Chang