Liffe October white sugar ended down $3.20 at $753.10 a tonne on Monday, in line with weaker commodity markets, as Europe's debt crisis triggers risk aversion. Liffe September robusta coffee ended $26 lower at $2,250 a tonne, tracking weakness on ICE as the risk of frost in Brazil receded.
Liffe September cocoa ended 9 pounds higher at 2,001 pounds a tonne, ample supplies cap gains. "Even on sugar, I think people are focussed on what is going to happen on global growth, and there are many problems in Europe and even in the US," said Romain Lathiere, fund manager with Diapason Commodities Management.
"People are starting to say that (sugar) prices seem to be over-bought." The market was underpinned by diminished crop prospects in top producer Brazil. "The market's a shade too high. It's not going to collapse because there's still a lot of uncertainty about Brazil, but it needs to respond to end-user resistance at these levels," a London-based softs analyst said.
"If it gets back to 25 cents, end-users will come in to buy, and if it goes below that, China might look to add to stocks." "There are low stocks, but they should be built up because of an expected surplus," said the London-based softs analyst.
Top producer Brazil is in the midst of harvesting what is expected to be a record off-year crop in the country's biennial crop cycle. "We've got to wait and see the final crop numbers from Brazil," said the analyst.
Cocoa futures were also weaker, with ample supplies from a bumper 2010/11 West African crop weighing on prices.
Cocoa arrivals at ports in top grower Ivory Coast reached around 1,332,000 tonnes by July 17, surging ahead of the previous season's arrivals by 24 percent, exporters estimated on Monday. Less favourable weather in West Africa and a return to the long-term decline in Ivory Coast production are expected to switch the global cocoa market into deficit in 2011/12, a Reuters poll showed on Monday. However, some dealers were sceptical of whether a deficit would eventuate as slow global economic growth could dampen cocoa consumption.
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