Coffee, sugar and cocoa futures fell with other commodities on profit-taking on Tuesday, weighed by doubts about a US bailout plan for financial markets. Robusta coffee futures were slightly down while the arabica market edged up as prices continued to track outside markets, particularly crude oil and the dollar.
November robusta futures in London were down $10 at $2,134 a tonne at 1150 GMT, while December arabica futures on ICE firmed 0.60 cents to $1.3720 per lb. "It (coffee) is all to do with outside markets. You are looking at the dollar, you are looking at crude oil, you are looking at everything else which is going on," one coffee dealer said.
Coffee prices have fallen sharply during the last three weeks as global financial turmoil sparked a decline in commodity markets with November robustas touching a low of $2,056 a tonne early last week. The fall provided a buy opportunity for roasters. "Roaster bought it last week and don't need to do anything for the time being," one dealer said.
Dealers said most origins were also sidelined although a favourable currency move has made prices more attractive for Brazilian producers. London March cocoa was down 8 pounds or 0.5 percent to 1,531 pounds a tonne in low volume of 1,044 lots at 1136 GMT. ICE March raw sugar was down 0.24 cent or 1.7 percent to 14.02 cents a lb. Sugar futures fell in sympathy with oil and were pressured by a nearby oversupply of the sweetener, dealers said.
ICE March raw sugar futures were down 0.21 cent or 1.5 percent to 14.05 cents a lb at 1144 GMT. They noted support in ICE March raw sugar at 13.50 cents and resistance at 14.30 cents a lb. London December white sugar was down $6.2 or 1.6 percent to $389.00 per tonne.
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