Sugar futures careened lower on Thursday, continuing to move in highly volatile dealings, taking their cue from crude oil whilst under pressure from the strong US dollar. Arabica coffee futures finished steady and less than 10 cents away from the recent 13-1/2 year peak, while cocoa futures reversed lower in consolidative dealings following two days of steep losses.
ICE raw sugar futures extended losses, correcting down from Wednesday's surge as the dollar strengthened, amid choppy trading in commodity markets at the start of the New Year. ICE March raw sugar slumped 1.96 cents, or by 6.1 percent, to close at 30.24 cents per lb, moving in a wide 2.13-cent range. The raws, used in the production of the alternative energy ethanol, moved in line with crude oil futures, which dropped more than 2 percent below $89 a barrel as buyers were deterred by the stronger greenback and lower US equities. ICE March cocoa dropped $22 to settle at $2,830 per tonne, an inside day. ICE March arabicas closed flat at $2.33 per lb, an inside day.