Soft commodities fall across the board

Soft commodity markets slid across the board Tuesday on speculative selling in modest business as an Easter holiday swoon seemed to have taken grip of the complex. Coffee, cocoa and sugar futures were hit by fund liquidation in both London and New York.
Global equities declined and crude oil eased amid increased concerns about Spain's financial struggles against the backdrop of the euro debt crisis. "There's a general weakness out there (in commodities) unless you're soybeans," said Country Hedging Inc analyst Sterling Smith. "Part of the malaise is due to a short work week."
Financial markets will be shut on Good Friday. Volumes in New York soft commodities were running from 10 to nearly 20 percent under the 30-day norm at 2:00 p.m. EDT (1800 GMT), Thomson Reuters data showed.
New York's May arabica coffee contract dropped 0.85 cent to finish at $1.8535 per lb. Benchmark Liffe May robusta coffee futures slid $11 to end at $2,025 per tonne. Arabica coffee prices have been weighed down by expectations for a big harvest in top producer Brazil and technical selling.
But analysts feel the market has the potential to rally in the coming months as top grower Brazil enters its winter, bringing with it the potential for freezing temperatures which can damage coffee farms. On Friday, arabica values jumped 4 percent after Brazil's government said it would increase loans to farmers, a move that could keep coffee beans off the market and support prices. They rose again by more than 2 percent on Monday.
Arabica futures had dropped more than 40 percent from the highs reached in May 2011, when the market rose above $3 per lb. New York's May raw sugar contract slipped 0.33 cent to close at 24.25 cents per lb. Last month, it hit a two-week low at 24.11 cents. London's May white sugar futures declined $8.50 to end at $634.60 per tonne. Cocoa futures ended lower. US bean values fell to their lowest since January 9 on an intraday basis at $2,140 per tonne. London May cocoa retreated 27 pounds or almost 2 percent to close at 1,418 pounds per tonne. New York's May cocoa slid $44 or 2 percent to finish at $2,143 per tonne.