LONDON: New York cocoa futures slid on Monday, pressured by a stronger dollar and dwindling interest from buyers, while arabica coffee fell to its weakest in more than three weeks.
COCOA
December New York cocoa was down $48, or 2.4 percent, at $1,995 a tonne by 1336 GMT, after hitting a session low of $1,984.
The market rallied sharply in the previous session on the back of short-covering by speculators, coupled with some industry buying.
However, dealers said buying had dried up on Monday, while gains in the dollar were weighing on prices.
"The dollar is hitting New York considerably here," said one dealer. "And there's just a complete lack of any buying around ... it has just disappeared for the time being."
December London cocoa fell 12 pounds, or 0.8 percent, to 1,504 pounds a tonne, reversing course after hitting 1,530 pounds, its highest since Aug. 29.
Ivory Coast has granted cocoa export licences to 72 companies and cooperatives for the 2017/18 season, down from 93 last season, according to a document from the Coffee and Cocoa Council regulator seen by Reuters on Monday.
COFFEE
December arabica coffee was down 1.75 cents, or 1.4 percent, at $1.263 per lb, after hitting $1.261, it's lowest since Sept. 7.
The arabica market was also pressured by the stronger dollar and crop-friendly rains in Brazil, after a recent dry spell threatened to curb output in the top grower.
"It looks negative, given the rainfall in Brazil and the dollar," said one dealer. "And, because the market has come down, the funds are more disposed to selling."
November robusta coffee was up $4 or 0.2 percent at $1,972 a tonne.
Indonesia's main coffee growing area of Lampung exported 20,510 tonnes of robusta beans in September, down 28 percent from the same month last year, local government data showed on Monday.
SUGAR
March raw sugar was down 0.07 cent, or 0.5 percent, at 14.03 cents per lb, also weighed by the dollar and Brazil weather.
"The current sugar weather forecast indicates plentiful rainfall in the weeks to come," Tropical Research Services said in a market update, noting this will benefit the development of the 2018-19 crop.
The October raw sugar delivery totalled 21,098 lots, or 1,071,829 tonnes, with material coming from Brazil, ICE Futures US data showed on Monday.
December white sugar was up $0.80, or 0.2 percent, at $363 a tonne.
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