LONDON: Raw sugar prices on ICE fell on Monday as persistent trade war fears sent global investors scrambling for safe-haven assets, while coffee and cocoa slid.
SUGAR
October raw sugar was down 0.05 cents, or 0.4pc, at 11.97 cents per lb at 1156 GMT.
Prices were pressured by lower oil prices, which fell again following US President Donald Trump's vow last week to impose additional tariffs on Chinese imports.
Lower energy prices discourage Brazilian cane mills from producing biofuel ethanol, instead encouraging them to produce sugar.
Sugar traders are also still digesting signs of plentiful near-term supplies.
"We've not got anyone hugely bullish out there. Long term probably prices are likely to improve, but for the short term (sugar) doesn't seem to be going anywhere," said a dealer.
Sugar gained 3.7pc last week, aided by expectations of reduced future supplies.
Analyst Green Pool raised its global sugar deficit forecast for the 2019/20 season to 3.67 million tonnes, raw value, from 1.62 million, citing output reductions in Brazil and India.
Also, speculators cut their net short position in ICE US sugar by 20,793 contracts to 147,109 contracts in the week to July 30.
Indian farmers have planted 6.6pc less summer-sown crops so far this season, mainly due to a weak start to the monsoon. The outlook is however improved.
October white sugar was down $1, or 0.3pc, at $322.70 a tonne.
COFFEE
September arabica coffee fell 1.1 cents, or 1.1pc, to 97.05 cents per lb.
Coffee fell 1.6pc last week, with plentiful global supplies continuing to pressure the market.
Speculators hiked their net short position in arabica coffee futures to its largest in five weeks, in the week to July 30.
"There doesn't seem to be much to support the market. Importantly, through the dollar, we might see further pressure," said a dealer.
A weak real versus the dollar has weighed on coffee in recent weeks, tempting Brazilian traders to sell more dollar-priced coffee.
September robusta coffee was down $6, or 0.5pc, at $1,306 a tonne.
COCOA
September London cocoa fell 18 pounds, or 1pc, to 1,844 pounds a tonne, having hit its lowest in nearly three weeks at 1,843.
September New York cocoa fell $12, or 0.5pc, to $2,347 a tonne, having hit a two-month low at $2,346.
The contract fell 2.9pc last week on improving weather conditions in top grower Ivory Coast.
Speculators reduced their net long position in ICE US cocoa by 4,236 lots to 18,855 lots in the week to July 30.
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