LONDON: Raw sugar futures on ICE were lower on Monday weakened by a glut of near-term supplies while arabica coffee and New York cocoa edged away from the prior session's multi-month lows.
SUGAR
October raw sugar was down 0.21 cents, or 1.8pc, at 11.43 cents per lb at 1249 GMT.
Dealers said the market continued to be weighed by excess near-term supplies while a smaller than expected increase in the speculative net short position in the weekly CFTC report was also seen as bearish.
"The fact that the speculative part of the market has not substantially increased its short may be taken as being bearish as it means they still have ammunition left," Nick Penney, senior trader at Sucden Financial, said in a market note.
Dealers said the market was expecting India to shortly announce an extension of its export subsidy system until September 2020.
Marex Spectron said in a report that a maximum of 6 million tonnes would be subsidised, up from 5 million tonnes last year, while the scheme would now include an ocean freight subsidy and a marketing fee.
October white sugar was down $3.60, or 1.15pc, at $310.50 a tonne.
COCOA
December New York cocoa was up $2, or 0.1pc, at $2,189 a tonne with the market consolidating after its recent slide linked to improving crop weather in West Africa.
The benchmark second month had slumped to a low of $2,170 on Friday, its weakest in nearly five months.
December London cocoa rose 9 pounds, or 0.5pc, to 1,720 pounds a tonne.
COFFEE
December arabica coffee was up 0.45 cents, or 0.5pc, at 96.80 cents per lb.
Dealers said the market remained on the defensive, however, following the harvesting of a large crop in Brazil and the potential remaining for record production in 2020.
The benchmark second month dipped to a low of 96.10 cents on Friday, its weakest since May 28.
November robusta coffee was down $1, or 0.1pc, at $1,332 a tonne.
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