Soft commodity markets weaker

Soft commodity futures were easier on Wednesday as traders remained focused on Europe's efforts to tackle its debt crisis. Raw sugar turned lower late due to investor sales while arabica coffee handed back its gains after forecasts for beneficial rain in top grower Brazil. Moisture now would bolster flowering of its coffee crop.
"We're at the mercy of the macro environment," said James Kirkup, head of sugar brokerage at ABN Amro Markets (UK) Ltd. "The main driver (in the softs complex) is all the news that comes out of Europe and Greece," said Nick Gentile, head of trading operations at investment fund Atlantic Capital Advisors. "People have to put less risk on." December arabica coffee futures on ICE sank 7.35 cents or by 3.05 percent, to settle at $2.335 per lb. London's November robusta coffee eased $1 to close at $1,985 per tonne.
Gentile said the market's mood swings from day to day, with elation flooding commodities on Tuesday when it appeared that Europe is coming to grips with its debt crisis and then gloom on Wednesday over fears Greece will eventually default. "The sad part about it is we're just giving back all of yesterday. We're doing the opposite of the dollar, trading in the mirror image of yesterday," said Hector Galvan, senior market strategist for RJO Futures in Chicago.
ICE March raw sugar contract fell 0.40 cent to close at 24.30 cents a lb. Traders are looking at the spot October contract because it is due to expire on Friday and they expect deliveries of under 5,000 lots. December white sugar futures on Liffe lost $4.70 to close at $643.80 a tonne.
A large Russian sugar beet crop could see the country export white sugar by sea for the first time in years, dealers said. A Russian producer has offered around 40,000 tonnes of white sugar FOB Black Sea, believed to be the first offer of Russian sugar for export to the world market in at least a decade, European trade sources said Wednesday.
Cocoa futures lost ground. "London's technical indicators highlight the risk for a fresh move lower," Brenda Sullivan, a technical analyst at Sucden, said. New York's December cocoa contract dropped $57 or by 2.09 percent to finish at $2,664 per tonne. London's December cocoa futures fell 29 pounds to end at 1,730 pounds per tonne, having touched a contract low of 1,715 pounds.