Robusta coffee futures touched their lowest point since the contract was revised in January 2008 as the market pulled back from its recent rally. Cocoa futures also fell, with the stronger pound weighing on the London market and sugar was little changed in moderate trade.
"It's almost as if the external markets are pausing for thought after what's been a fantastic rally up until the last couple of weeks this year in every commodity," an analyst said. "People are now standing back and pinching themselves saying 'Have we maybe got over-enthusiastic on the expectation of a quick end to the recession?'"
London robusta coffee futures for September were down $115 at $1,350 per tonne at 1539 GMT, having touched $1,330 earlier, the lowest level for the benchmark second month since the contract was relaunched in January 2008. New York's September arabica contract was down 3.70 cents at 1.1915 per lb.
"The robusta market is being buffeted about by what's happening in other markets, and the dollar especially, and a sense of how we are emerging from the recession, if indeed we are emerging from the recession," the analyst said. London cocoa prices also softened, extending this week's retreat from recent two-month highs to hit a 3-1/2-week low of 1,601 pounds a tonne.
Sucden Financial said in an earlier report that both Liffe and ICE cocoa markets seemed to be running out of steam. September cocoa on ICE was down $39 at $2,517 a tonne. In London, September cocoa was down 36 pounds at 1,601 pounds a tonne. Sugar futures were broadly steady in moderate volumes.
ICE October raw sugar futures were up 0.16 cent to 16 cents per lb. London August white sugar was up 30 cents to $428.60 per tonne. India's cabinet on Friday extended the sugar stock limit for traders in the top consumer until January 8, next year to ensure adequate supplies in the domestic market, Home Minister P. Chidambaram said.
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