ICE coffee, sugar and cocoa futures slid along with other commodity markets on Thursday, as investors dumped riskier assets on mounting concern about the eurozone's debt crisis. "It's a down day in the softs markets," said Jack Scoville, senior analyst for The Price Group in Chicago.
Base metal copper, associated with underlying economic conditions due to its wide use in industry, led commodities lower as it tumbled 6 percent to two-week lows. December arabica coffee futures on ICE dropped 4.50 cents, or 1.9 percent, to finish at $2.3165 per lb. "It (coffee) is trading a bit sideways with some volatility and an eye on what is going on in Europe," said Romain Lathiere, fund manager with Diapason Commodities Management.
Robusta coffee futures on Liffe were also lower with January closing down $51, or 2.7 percent, at $1,848 a tonne. Farmers in top robusta producer Vietnam were reluctant to sell beans after prices dropped in London, while premiums for Indonesian coffee revisited a record seen in August because of tight supply, dealers said. Traders said when prices climb over 28 cents, basis March, cash buying dries up. But the same consumer interest seems to show up below 25/26 cents.
Sugar drew support from uncertainty about how small sugar production out of top producer Brazil is this season and the extent of flood damage in Thailand. "The wind seems to have been taken out of sugar's sails for the time being. Funds seem to be holding back from further buying for the time being, perhaps afraid of a fall in the value of the euro and dollar strength," Nick Penney of Sucden Financial said in a daily update.
March raw sugar fell 0.17 cent, or 0.6 percent, to end at 26.80 cents per lb while December white sugar on Liffe dropped $16, or 2.3 percent, to finish at $683.00 a tonne. ICE December cocoa closed down $41, or 1.6 percent, at $2,562 a tonne, while March cocoa on Liffe finished down 15 pounds at 1,691 pounds a tonne.
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