LONDON: Raw sugar futures dropped to a three-month low on Monday, pressured by a stronger dollar, following a sharp fall on Friday after a Brazilian industry group gave a higher-than-expected forecast for 2012/13 output.
Arabica coffee fell to an 18-month low under the weight of the stronger dollar and expectations of big supplies from Brazil.
ICE cocoa consolidated after rallying on Friday due to better-than-expected European first-quarter grindings data.
Raw sugar futures traded at the lowest level in three months as dealers digested last week's early crop estimates for Brazil's coming harvest.
May raw sugar on ICE was down 0.24 cent or 1 percent at 23.13 cents a lb at 1408 GMT, having earlier touched a three-month low, basis front month, of 22.19 cents.
"We expect the weakness in the markets to continue and we are not satisfied that enough liquidation has taken place," said Nick Penney of brokerage Sucden Financial.
On Thursday, Brazilian sugar industry association Unica forecast the main center-south crop would yield 33.1 million tonnes of sugar in 2012/13, up 5.7 percent on the year. It pegged the centre-south cane crush at 509 million tonnes.
A London-based broker said the sugar number was higher than expected, although the cane number was neutral.
The Unica data followed a forecast by Conab, Brazil's government crop supply agency, that sugar production would rise to 38.9 million tonnes in 2012/13.
London August white sugar futures fell $10.90 or 1.8 percent to $599.80 per tonne in modest volume of 4,300 lots.
NYSE LIFFE said on Monday 263,950 tonnes (5,279 lots) of white sugar had been delivered against expiry of the London May white sugar futures contract.
The delivery included 2,500 lots (125,000 tonnes) of Indian sugar, one of the largest deliveries of Indian sugar in recent memory, as well as sugars from Guatemala and Thailand.
Exchange data showed the 2,500 lots were tendered to be loaded at the Indian port of Kandla.
According to the data, another 1,334 lots were tendered to be loaded at Laem Chabang port in Thailand, 800 lots at Bangkok, and 645 lots at Puerto Quetzal in Guatemala.
Indian sugar was delivered against a Liffe white sugar futures contract for the first time in April 2008.
As from Monday, the London white sugar futures market will close one hour later at 1730 GMT, settling at the same time as New York ICE sugar.
Thai raw sugar prices could slip this week because of rising supply in the main producing countries, while Indonesian coffee premiums are likely to stay at high levels as roasters struggle to get beans, dealers said on Monday.
COFFEE, COCOA
Arabica coffee futures fell to an 18-month low, pressured by the stronger dollar. A firmer greenback makes dollar-denominated commodities more expensive in terms of alternative currencies.
July arabicas on ICE fell 3.2 cent or 1.8 percent to $1.7700 per lb, having earlier touched $176.60 per lb, an 18-month low, basis second month.
Dealers noted May/July spreading ahead of the May contract's first notice day on April 20 and said ample nearby supplies from top producer Brazil weighed.
Liffe July robusta coffee futures were down $15 or 0.75 percent at $1,997 per tonne in slim volume of 2,836 lots.
ICE cocoa futures inched down, consolidating after Friday's jump of more than 3 percent on higher-than-expected grind data in Europe, and also pressured by the dollar.
"The European grindings data dealt a blow to bearish concerns in the market over supply," Flury said.
North American first-quarter data will be released on April 19.
July cocoa on ICE was down $6 or 0.3 percent at $2,194 per tonne. On April 11, the contract had dipped to $2,056, the lowest level for the second month since Jan. 9.
Liffe July cocoa was down 6 pounds or 0.4 percent to 1,452 pounds per tonne in modest volume of 2,255 lots.
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