March cocoa in London ended 1 pound higher at 2,208 pounds a tonne, underpinned by a weak pound on Monday. The market had earlier climbed to a new 24-1/2 year high for the second month of 2,226 pounds. December white sugar in London ended $9.30 lower at $574.20 per tonne. The market was weakened by a stronger dollar.
London November coffee ended $2 higher at $1,365 a tonne with the market looking to consolidate after a steep sell-off late last week. "The market looks like it's consolidating. We are in uncharted territory," said Raghu Ramachandran, a technical analyst with Rabobank. London cocoa futures reversed early gains, but losses were limited by the weak pound.
Sterling touched a one-week low of $1.6251. Investors remained bearish on the pound after data on Friday showed the UK economy unexpectedly contracted in the third quarter. Cocoa has been supported by concerns over tight supplies from top grower Ivory Coast, as well as fears about the impact of the El Nino weather pattern on production, and the effect of disease and pests on output.
Sugar futures fell as the dollar strengthened in volatile, two-way investor dealings, as traders returned to their desks from last week's industry conference in top producer Brazil. "This morning both markets (ICE and Liffe) have been trading in low volume either side of unchanged, as many traders have now returned from last week's gathering in Sao Paulo," broker Sucden said in a daily market report. Sugar futures are well supported by concerns over the impact of heavy rainfall on yields in top producer Brazil, as well as hefty Indian import requirements after a dismal domestic crop.
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