Arabica coffee futures rebounded from September lows in New York.

New YORK / London (Reuters)-ICE sugar hit its fourth straight September low on Wednesday amid concerns about ethanol prices amid a stronger dollar and recent sharp falls in oil prices.

Arabica coffee futures rose in quiet trading, falling to their lowest level since the end of September on forecasts of rain in the growing areas of Brazil, the largest coffee grower. Cocoa futures fell slightly, following the general decline in commodity markets.

The Thomson Reuters CoreCommodity index (.TRJCRB) fell 0.2% to its lowest level since June 2010 as upbeat comments from federal reserve officials on the u.s. economy boosted the dollar (.DXY).

ICE- March raw sugar futures (SBc1) closed down 15 cents, or 1%, at 15.09 cents per pound, hitting an intraday low of 15.07 cents since Sept. 26.

"the biggest factor affecting the sugar market in the near future is the trend of oil prices," said a source from the sugar trade in London.

The weakening price of crude oil weakens the competitiveness of ethanol biofuels extracted from sugar cane, prompting processors to increase sugar production and reduce ethanol production. U. S. crude oil futures tumbled to a 2009 low on Monday.

ICE- March sugar futures (LSUc1) closed down $4.10, or 1 per cent, at $396.30 a tonne, hitting a contract low of $396.10.

ICE- March Arabica Coffee Futures (KCc2) rose a quarter, or 0.1%, to $1.8365 a pound, finding technical support at a low of $1.83 hit on Sept. 22. ICE- January Robusta coffee futures (LRCc1) closed up $17, or 0.8%, at $2051 a tonne.

New York March cocoa futures (CCc2) closed down $7, or 0.3%, at $2852 a tonne. London March cocoa futures (LCCc2) closed down 9 pounds, or 0.5%, at 1895 pounds per tonne.