Raw sugar futures closed lower Thursday, giving back Wednesday's sharp gains in an inside day as the market fell along with many markets around the world as renewed economic worries sparked investors to sell broadly. US cocoa also finished lower while arabica coffee recouped its losses and ended firmer after a surge of late-day buying.
Key October raw sugar futures dropped 0.37 cent, or 1.3 percent, to finish at 29.12 cents a lb. Market lower as it tracked the sell-off, which hit the rest of the commodity complex. "There's just the fear of a disaster" which hit the softs complex, said The Price Group analyst Jack Scoville. Bullish fundamentals provided support for the sweetener - brokers. Smaller Brazilian crop, questions over India's sugar export plans, and imports by China bullish for sugar.
December arabica coffee futures reversed to close up 1.60 cents at $2.6840 per lb. December closed well above the 200-day moving average around $2.5260 for the third straight day, but faced resistance at the 100-day moving average around $2.6910, said traders.
Market fell on views that it was overbought and on commodity wide pressure as renewed concerns about macroeconomic worries caused heavy selling, said traders. Late-day buying pushed the market into positive territory, said traders. Some light September/December spreading took place ahead of September's first notice day Aug. 23, said traders. ICE certified arabica stocks fell 7,635 bags to 1,484,162 bags on Aug. 17, an 11-1/2-year low, said ICE data. A cold front will sweep over top grower Brazil's south-eastern coffee belt over the weekend, bringing some rain but no frost, said forecaster Somar.
Key December dropped $54, or 1.8 percent, to close at $2,985 a tonne. Market weak as investors fretted about fears that the European financial crisis could create havoc in other countries, said traders. It is first notice day for September. Cocoa arrivals at ports in top grower Ivory Coast reached 1,379,440 tonnes by Aug. 14, up from 1,125,046 tonnes in the same period a year ago, according to Coffee and Cocoa Bourse data.