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. Sugar pared its initial losses, with a small Brazilian crop providing support and the market looking to release of industry group Unica's crop update on Thursday.
But macro economic factors have trumped bullish developments at this time. Liffe's October white sugar futures fell $12.40 to trade at $723.90 per tonne. London's September cocoa futures fell 24 pounds to close at 1,841 pounds a tonne. London's September robusta futures gained $35 to finish at $2,133 a tonne.
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