London coffee, sugar drop

Coffee, sugar and cocoa futures fell sharply on fund and investor selling on Wednesday, and risked dropping further on weakening financial markets and a worsening outlook for the global economy. "Sugar is under the influence of the macro markets," said James Kirkup, senior sugar broker with Fortis Commodity Derivatives. "The investment order flow is still on the exits."
Fortis Commodity Derivatives said earlier in a daily market report: "Whilst the panic selling might be over, we think we are now entering a period where investors will be endlessly fed a diet of recessionary data about the global economy." London white sugar futures traded lower in sympathy with raw sugar, depressed by investor and fund sales and weaker stock markets on a worsening economic outlook.
"A little bargain hunting/short covering turns into good support," UK broker Sucden said in a daily market report. ICE March raw sugar was down 0.38 cent or 3.3 percent to 11.33 cents a lb at 1507 GMT. London December white sugar futures were down $9.0 or 2.7 percent to $328.1 per tonne.
Cuba's sugar minister said on Tuesday agricultural yields would keep increasing until they reached international standards and the country once more produced millions of tonnes of raw sugar. The venture capital arm of Brazil's Votorantim Group, Votorantim Novos Negocios, said on Tuesday it is investing in the US-based biofuels company Amyris.
January robustas were down $43 or 2.3 percent to $1,793 per tonne in modest volume of 5,933 lots at 1504 GMT. Dealers saw nearby support at $1,740-1,750. ICE December arabicas were down 3.25 cents or 2.7 percent to $1.1570 per lb. Risk aversion wrestled stock markets down on Wednesday, snuffing out a two-day rally as investors returned to last week's rattled state even after government bank bailouts took the edge off money market stress.
London cocoa futures fell on rollover business and arbitrage as the pound strengthened against the dollar, and felt the pressure from weakness across the soft commodities complex on mounting fears that a global economic downturn could get worse. ICE December cocoa was down $72 or 3.1 percent at $2,235 per tonne. March cocoa was down 38 pounds or 2.7 percent to 1,363 pounds per tonne.
Cocoa bean exports from Ivory Coast's San Pedro port for the completed October to September 2007/08 season totalled 456,327 tonnes, up around five percent on the 2006/07 season, port data showed on Tuesday.