LONDON: Raw sugar futures slipped on Monday, pressured by light-volume selling against a backdrop of ample global supplies, while a firm British pound pushed London cocoa lower.
SUGAR
March raw sugar was down 0.04 cents, or 0.3 percent, at 13.21 cents per lb by 1128 GMT, giving up some of the corrective gains made in the previous session.
Prices fell to a 3-1/2 month low last week as heavy speculative selling and expectations for a looming global supply glut dampened sentiment.
However, exchange data on Friday showed that speculators had tripled their bearish stance in the week to Jan. 16, signalling that there may be only limited scope for further short-selling by funds.
"The investor short position might now be close to where it has peaked a few times in the recent past," Commonwealth Bank of Australia's Tobin Gorey said in a note. "Investor selling might possibly slow from here, but there is no guarantee."
Traded volumes were low on Monday, but dealers noted chart signals remained bearish as the 10-day moving average had crossed below the 40-day and 100-day averages.
The market also remained vulnerable to selling from under-hedged Brazilian producers, which could limit short-covering gains, dealers said.
March white sugar rose $0.50, or 0.1 percent, to$354 a tonne.
COCOA
March London cocoa fell 7 pounds, or 0.5 percent, to 1,373 pounds a tonne, partly weighed by a stronger British pound.
Cocoa processing in Asia rose 4.2 percent in the fourth quarter of 2017, data from the Cocoa Association of Asia (CAA) showed on Monday.
This figure, though positive, fell short of market expectations for a rise of 5-10 percent.
It followed a surprise decline in North American grinding last week. European processing, meanwhile, marked the highest fourth-quarter grinding in ECA data going back to 1999.
March New York cocoa was up $4, or 0.2 percent, at $1,935 a tonne.
Cocoa arrivals at Ivorian ports totalled 68,000 tonnes between Jan. 15 and Jan. 21, compared with 56,000 tonnes in the same period last season, exporters estimated on Monday.
COFFEE
March arabica coffee was up 0.6 cents, or 0.5 percent, at $1.2185 per lb.
Speculative selling and expectations for ample global supplies pushed prices to their lowest since late December in the previous session.
March robusta coffee was up $6, or 0.3 percent, at $1,762 a tonne, consolidating after a sharp fall on Friday.
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