LONDON: ICE arabica coffee and cocoa futures eased in early trade on Monday, as the dollar strengthened on debt crisis concerns in Europe after the region's ministers delayed a decision on emergency loans to Greece.
Sugar futures were little changed, underpinned by low yields and a slow start to the harvest in the centre-south of Brazil, and congestion in Brazilian ports.
Raw sugar futures on ICE traded around two-month highs, with upside capped by a stronger dollar.
ICE July raw sugar futures up 0.04 cent or 0.2 percent to 26.41 cents a lb.
Dealers said the market remained underpinned by the slow start to the Brazilian harvest, and loading delays in Brazil.
Liffe August white sugar was up $4.00 or 0.6 percent at $731.60 per tonne in slim volume of 217 lots.
New York sugar is facing a strong resistance at 26.39 cents per lb and is due for a correction.
ICE arabica coffee futures eased as worries about a debt crisis in Greece eroded risk appetite and put pressure on the euro. A shortage of high-quality arabica beans underpinned prices.
ICE September arabica coffee was off 1.15 cent or 0.5 percent at $2.5135 per lb.
Liffe September robustas were down $52 or 2.2 percent at $2,290 a tonne.
ICE cocoa futures fell, under pressure from the strengthening dollar and the growing concerns over the Greek debt crisis. Dealers said forecasts for a large global surplus in 2010/11 were also keeping the market on the defensive.
September cocoa on ICE was down $24 or 0.8 percent at $2,893 a tonne at 0834 GMT, hovering above a low of $2,868 set on June 3.
Liffe September cocoa was down 6 pounds or 0.3 percent to 1,823 pounds per tonne in thin turnover of 213 lots.
The euro fell on Monday after euro zone finance ministers postponed a final decision on extending 12 billion euros in emergency loans to debt-stricken Greece, while short-covering helped to lift stocks in Japan and Hong Kong.
Recent demands for euro put options suggest investors are bracing for further weakness.
Brent crude fell $1 on Monday, extending last week's losses, as concern over the debt crisis in Greece and a weaker economic outlook for the world's top oil consumer, the United States, weighed on prices.
Copyright Reuters, 2011
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