ICE sugar and coffee futures eased on Thursday as a stronger dollar and fund selling linked to concerns about slowing global economic growth kept prices under pressure. October raws on ICE fell 0.38 cent or 1.4 percent to 27.31 cents a lb by 1434 GMT after touching 27.07 cents, its lowest level in nearly one month.
"We seem to be in fund sell mode, and concerns on the coming weather in Brazil or perhaps further forward in Russia will be discounted," Sucden Financial said in a market update on Thursday. "It seems a more dangerous buy at the moment and perhaps a test of 27 cents is on the near term horizon," Sucden added.
Arabica coffee futures on ICE also fell. "Coffee is very much following the macro uncertainty," Haque said, adding the market was also contending with more Brazilian supplies with the harvest well advanced. September arabica coffee on ICE slid 4.45 cents or 1.8 percent to $2.3745 per lb. Cocoa futures were mixed with a stronger dollar weighing on ICE prices.
September cocoa on ICE was off $3 at $2,913 a tonne. Dealers said supplies were currently abundant with a large global surplus seen in 2010/11 although many expect the market to swing into deficit in 2011/12 with the weather seen less favourable for next year's crops in West Africa.
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