London, Oct 30 - Coffee futures rose on industry and investor buying on Thursday as commodities and stock markets rallied after a U.S. interest rate cut triggered a slide in the dollar.
But soft commodity markets, bouncing back from multi-month lows, were still haunted by fears over global recession.
Fund selling erased gains across the softs complex after news of a less than expected 0.3 percent Q3 U.S. gross domestic product (GDP) decline.
"We're seeing a little bit more confidence in all the (soft commodity) markets. We are seeing a little rebound and mainly because they (markets) have been so low," a robusta coffee futures dealer said.
"The weakening of the dollar is encouraging investors to buy."
January robustas were up $17, or 1 percent, at $1,659 per tonne on roaster buying into fund selling, in moderate volume of 2,275 lots at 1214 GMT.
ICE December arabicas were up 0.3 cent, or 0.3 percent, to $1.1250 per lb.
World stocks and the euro rallied on Thursday, driven by bargain-hunting and sweeping gains in emerging markets after the U.S. Federal Reserve cut interest rates and opened swap lines to four developing economies.
Kraft Foods Inc will lower prices in some categories as commodity costs fall, but many costs still remain above year-ago levels, the company's chief executive said on Wednesday.
Sugar futures rose on investor buying into producer selling on firmer oil prices and a weaker dollar after the half-point U.S. rate cut, dealers said.
"Sugar got oversold it definitely went too low and now it's being corrected," said David Sadler, a senior white sugar futures trader.
ICE March was up 0.09 cent, or 0.7 percent, to 12.18 cents per lb at 1217 GMT, having earlier touched a three-week peak, basis front month, of 12.35 cents a lb.
London December white sugar futures were up $3.0, or 0.9 percent, to $333.0 per tonne in slim turnover of 719 lots.
The sugar crushing season in Thailand, Asia's top producer, may be delayed by as much as one month due to a fall in world sugar prices, traders and industry officials said on Thursday.
Consumers expecting a big drop in food prices as commodity costs fall and the economy weakens may be disappointed by comments from Kraft Food Inc and Kellogg Co executives.
U.S. cocoa futures traded higher with other commodities, buoyed by the weak dollar, while the firmer pound limited upside in London cocoa futures.
U.S. cocoa futures roared to finish up nearly 9 percent on Wednesday, propelled by the commodity-wide rally on the weak dollar.
Benchmark ICE December cocoa were up $1, or 0.05 percent, at $2,138 per tonne at 1221 GMT.
London March cocoa erased its early gains, standing steady, down 7 pounds, or 0.5 percent, at 1,349 pounds per tonne.
Cocoa farmers in Ivory Coast said on Wednesday they were continuing their strike, now in its second week, though some planters in the east softened their stance ahead of a meeting with administrators.