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SOFTS-ICE sugar, coffee, cocoa fall on strong dollar

Published: 22 Oct 2009 17:12:37 PST

* Vietnam exporter to sell coffee to Armajaro

* Ivorian cocoa growers end strike

LONDON, Oct 22 - ICE raw sugar, cocoa and coffee futures fell on investor selling in light volumes on Thursday, pressured by falling equity markets and a firmer dollar, dealers said.

"The equity markets closed off (down) post our (commodities') closes (on Wednesday)," said Nick Hungate, a soft commodities trader with Rabobank, adding the stronger dollar dragged on the softs complex.

Hungate also referred to a lack of physical offtake weighing on sugar futures.

The market fundamentals in sugar remain strong due to concerns over heavy rainfall in top producer Brazil, and expectations of a sharp Indian appetite for imports into 2010.

ICE December raw sugar futures were down 0.14 cent to 23.90 cents a lb at 1156 GMT, while London (Liffe) December white sugar was down $2.30 to $596.30 per tonne in low turnover of 742 lots.

ICE cocoa consolidated below Wednesday's highest settlement in nearly 30 years, pressured lower by weaker equities, the stronger dollar and softer commodity prices.

Dealers referred to steady new crop supplies coming from key West African producing countries, but noted that the global demand picture remained weak.

Dealers also took stock of an end to a three-day strike by growers in top producer Ivory Coast, although the stoppage did not appear to have had a significant market impact this week.

ICE December cocoa futures were down $19 to $3,365 per tonne, while Liffe March cocoa was up 7 pounds to 2,185 in thin volume of 1,159 lots.

Coffee futures also fell, pressured by outside financial markets and the stronger greenback, with traders referring to a large buildup of investor positions.

ICE December arabica futures were down 2.8 cents to $1.4160 per lb, while Liffe November robustas were down $11 to $1,439 in moderate volume of 3,159 lots.

Vietnamese coffee exporter Intimex has signed a deal to sell 100,000 tonnes of coffee from the new 2009/2010 season to British firm Armajaro Trading, trade and company sources said on Thursday.


Source: Reuters

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