Raw sugar, arabica coffee and cocoa futures ended lower across the board Monday due to rising worries over the euro debt zone crisis and the prospect that the United States could default on its debt next month. Key October sugar futures shed 0.03 cent to close at 28.94 cents per lb, with the session low at 28.20 cents. Sugar runs lower on steady bouts of investor sales, said dealers.
Market sees pressure from worries over eurozone debt crisis and prospect of a debt default by the United States. Most of the running seems to be "spec selling," said The Price Group senior analyst Jack Scoville.
Losses appear to be trimmed by news of reductions in the estimated cane crush of No. 1 producer Brazil at 533.5 million tonnes, and the trade belief it could drop below 530 million. September arabica coffee futures dropped 5.40 cents, or 2.1 percent, to finish at $2.4815 per lb.
Macro issues in the US and Europe pressure coffee futures. Risk of frost in No. 1 grower Brazil receding. Brazil's coffee areas expected to stay warm at the end of July, the period when risk of crop-damaging frost is usually at its highest. Key September cocoa futures shed $9 to end at $3,159 per tonne. Bean values come under pressure as a result of fallout from worries over debt issues in Europe and the United States.
Market also under pressure from ample supplies flowing out of top producer Ivory Coast. 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.
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.