ICE sugar, cocoa ease on debt worries

Sugar futures were little changed, underpinned by low yields and a slow start to the harvest in the centre-south of Brazil, and congestion in Brazilian ports.

Raw sugar futures on ICE traded around two-month highs, with upside capped by a stronger dollar.

ICE July raw sugar futures up 0.04 cent or 0.2 percent to 26.41 cents a lb.

Dealers said the market remained underpinned by the slow start to the Brazilian harvest, and loading delays in Brazil.

Liffe August white sugar was up $4.00 or 0.6 percent at $731.60 per tonne in slim volume of 217 lots.

New York sugar is facing a strong resistance at 26.39 cents per lb and is due for a correction.

ICE arabica coffee futures eased as worries about a debt crisis in Greece eroded risk appetite and put pressure on the euro. A shortage of high-quality arabica beans underpinned prices.

ICE September arabica coffee was off 1.15 cent or 0.5 percent at $2.5135 per lb.

Liffe September robustas were down $52 or 2.2 percent at $2,290 a tonne.

ICE cocoa futures fell, under pressure from the strengthening dollar and the growing concerns over the Greek debt crisis. Dealers said forecasts for a large global surplus in 2010/11 were also keeping the market on the defensive.

September cocoa on ICE was down $24 or 0.8 percent at $2,893 a tonne at 0834 GMT, hovering above a low of $2,868 set on June 3.

Liffe September cocoa was down 6 pounds or 0.3 percent to 1,823 pounds per tonne in thin turnover of 213 lots.

The euro fell on Monday after euro zone finance ministers postponed a final decision on extending 12 billion euros in emergency loans to debt-stricken Greece, while short-covering helped to lift stocks in Japan and Hong Kong.

Recent demands for euro put options suggest investors are bracing for further weakness.

Brent crude fell $1 on Monday, extending last week's losses, as concern over the debt crisis in Greece and a weaker economic outlook for the world's top oil consumer, the United States, weighed on prices.

Copyright Reuters, 2011

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