Arabica coffee futures on ICE extended losses early on Wednesday after their biggest one-day fall in 2-1/2 years in the previous session, as system funds continued to cut long positions built up in recent months. Broad-based losses were seen in several commodity markets on Tuesday as dismal US housing data heaped pressure on stock markets and raised further concerns about the pace of US economic recovery.
Cocoa futures fell on the improving West African supply outlook, while sugar eased, but found support from nearby supply tightnessies. Arabica coffee futures had hit their highest level in nearly 13 years on Monday but have fallen back sharply as funds started to liquidate a large long position.
ICE December arabicas were down 1.50 cents at $1.6695 a lb as at 1516 GMT. Raw sugar futures on ICE eased following a strong rebound from early losses on Tuesday which saw the market set a five-month high on the front month of 20.20 cents a lb.
ICE October raw sugar traded down 0.16 cent at 20.00 cents a lb. Cocoa futures on ICE also remained under pressure with benchmark December breaking below Tuesday's low of $2,776 a tonne, the weakest level for the second position in more than five months. ICE December cocoa traded down $52 at $2,761 per tonne.
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