Coffee futures turned firm.
Global stock and commodity markets fell and the euro dropped against the US dollar as investors feared a possible Greek debt default and the fallout that would have on the euro zone.
Raw sugar futures on ICE bucked the trend by consolidating on investor short-covering after their biggest one-day slide in six months on Friday, with uncertainty over Brazil's crop size and good physical demand underpinning prices.
End-users, attracted by lower prices after the market had closed down 6.7 percent on Friday, were seen buying.
"The supporting element in the market is the end-user," said James Kirkup, head of sugar brokerage at ABN AMRO Markets (UK) Ltd.
Egypt's state-owned Sugar and Integrated Industries Co said on Monday it had bought 30,000 tonnes of raw sugar for October shipment.
ICE October raw sugar futures rose 0.31 cent, or 1.1 percent, to settle at 27.83 cents per lb, while March rose 0.40 cent to end at 26.71 cents a lb.
December white sugar futures on Liffe rose $1.90, or 0.3 percent, to finish at $689.10 a tonne.
There is some talk in the trade that an overly long monsoon in No. 2 producer India, which plans to export significant amounts of sugar, could hurt yields and eventually crimp exports. Prospects for large northern hemisphere crops in the fourth quarter capped the upside.
"I think we'll stabilize here. We've taken the market down hard," said Jack Scoville, senior analyst at The Price Group. "We may get some sideways action for the meantime until October goes off the board."
The spot October contract is due to expire at the end of next week. Its open interest stands at 80,468 lots as of last Friday, ICE Futures US data showed, and dealers believe that if the current pace of liquidation is maintained, the amount to be delivered against the tape next week will be small.
Brazil's center-south should produce between 28.3 million and 29.3 million tonnes of sugar in the current season, analysts Canaplan forecast.
COCOA SUPPLIES IN PIPELINE
Cocoa futures on ICE fell nearly 3 percent to close at the lowest in nearly a year, basis spot month, on risk-aversion selling and fundamental pressure from expectations of ample main-crop supplies in West Africa.
"It's a slow grind lower and industry's still buying cocoa because of the butter, their butter ratios are low," said Nick Gentile, head trader at Atlantic Capital Advisors in New Jersey.
ICE December cocoa closed down $76, or 2.7 percent, at $2,716 a tonne, the weakest settlement for the spot contract since Oct. 5, 2010.
London March cocoa fell 39 pounds, or 2.1 percent, to finish at 1,800 pounds per tonne, having touched a contract low of 1,791 pounds.
Dealers said the market continued to be weighed by abundant supplies following a large global surplus in the 2010/11 season although a much tighter balance is anticipated in 2011/12 with many expecting a small global deficit.
Expectations that weak global economic conditions will limit cocoa consumption also weighed.
ICE arabica coffee futures turned higher in choppy dealings as the market consolidated after hitting a one-month low on Friday.
"The bigger funds don't have that big of a position (on coffee)," Gentile said, adding that this is one reason it did not join the majority of the commodity complex sharply lower as funds liquidated positions there.
ICE December arabica coffee futures gained 1.65 cents to end at $2.6205 per lb, while November robusta coffee on Liffe rose $22 to conclude at $2,131 per tonne.
Copyright Reuters, 2011