(Reuters) – ICE Arabica coffee futures closed lower on Thursday, pressured by a stronger dollar, although concerns about dry weather in the biggest producer, Brazil, limited losses.
* Arabica coffee for December fell 2.75 cents, or 1.2%, to $2.325 a lb, further down from last week’s six-month high of $2.4295.
* Dealers said conditions remained dry in Brazil’s coffee areas, raising concerns that there could be insufficient moisture to sustain flower bud development after early flowering.
* Green coffee exports from Brazil in August were 20% lower compared to the previous year.
*Robust coffee for November fell 0.8% to $2,231 a tonne.
* Raw sugar rose 0.6% to 17.99 cents a lb, rebounding after falling as low as 17.75 cents.
* Traders noted that falling fuel prices in Brazil remain a downward influence, raising the prospect that more cane will be used to produce sugar rather than sugarcane-derived biofuel.
* Petrobras said on Thursday that it will reduce gasoline prices at refineries by 7% from Friday.
* But a good flow of sugar in the export market and drought in Europe were seen as supporting factors.
* October white sugar rose $8.30, or 1.5%, to $559.10 a tonne.
(By Marcelo Teixeira and Nigel Hunt)