Sugar and cocoa futures fell on Wednesday while coffee rose as the softs complex struggled to find its footing in a volatile market environment. Renewed risk aversion flared as it was linked to rumours of a possible downgrade in France's credit rating which in turn sparked selling across a wide range of commodity and other financial markets.
Global stocks slumped as the appetite for risk evaporated in an investment climate rife with uncertainty. The key October raw sugar contract shed 0.26 cent to trade at 27.23 cents per lb at 12:34 pm (1634 GMT). US cocoa eased as September/December spreading in heavy volume continued ahead of the spot contract's first notice day next week and as nearby supplies remained plentiful, dealers said.
ICE Futures US December cocoa contract lost $72 or by 2.4 percent to end at $2,871 a tonne. Arabica coffee futures moved higher on September/December spreading ahead of the September contract's first notice day August 23. The December arabica coffee contract gained 0.50 cent to trade at $2.39 a lb at 12:35 pm.
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