NEW YORK/LONDON (Reuters) – Sugar and coffee contracts ended lower on the ICE on Thursday, in the wake of most commodities, as investors continued to move away from riskier assets amid rising global interest rates. and the prospect of recession.
SUGAR
* October raw sugar closed down 0.32 cents, or 1.7%, at 18.35 cents a lb.
* Dealers said weaker oil prices, as well as falling fuel prices in Brazil, denote that it is now significantly more profitable for mills to use cane to make sugar than biofuel ethanol, raising the prospect of increased production of the sweetener.
* There were also negotiations that the Indian government would allow an extra 1 million tonnes of exports in the current season.
* October white sugar was down $3.30, or 0.6%, to $532.60 a tonne.
COFFEE
*September Arabica coffee fell 2.3 cents, or 1.1%, to $2.1585 per pound, pulling back after rising to a peak of $2.1860 on Wednesday – the highest level high in over a week.
* Dealers said the market, however, remained supported by falling inventories. ICE-certified inventories fell to 712,817 bags after a drop of about 28% last month.
* The coffee harvest in Brazil continued to pick up pace, but there are conflicting reports regarding yields.
* September robusta coffee fell $11, or 0.6%, to $1,987 a tonne.
(Reporting by Marcelo Teixeira and Nigel Hunt)
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