White sugar futures were little changed on Monday ahead of next week's expiry of the October contract, while robusta coffee dipped on ample supplies. US softs markets were shut for the Labour Day holiday. White sugar futures closed slightly higher after easing earlier in the day, as trade quietened due to the US holiday. October white sugar futures closed $1.50 or 0.43 percent higher at $347.90 per tonne. Turnover was light, reaching 2,794 lots by the end of trading.
A senior Western analyst said he expected a moderate delivery tonnage against the October white sugar contract expiry on September 15, with much Thai white sugar already sold in Asia. "Modest deliveries are likely, with a lack of Thais as Thai whites have found homes within the region, particularly in China," the analyst said, adding that Brazilian sugar was likely to feature in the delivery. Analysts said the market was also focused on progress of a weak monsoon in India, the world's number two sugar producer after Brazil.
"For India as a whole this would be the second consecutive year of 'poor' monsoons, which would have implications for all agricultural products, and might lead to export bans," a second analyst said in a weekly report. Forecasts for rains in Brazil in the coming weeks could disrupt cane harvesting, potentially providing more support for prices. Analyst Green Pool said in its latest weekly report: "Several other important factors come into focus. Rain this week in centre-south Brazil, expected to force stoppages. Too little rain in India and Thailand. Too little cane in China."
Robusta coffee futures inched lower, pressured by expectations for large crops in leading Asian producers such as Vietnam. November robusta closed $19 or 1.19 percent down at$1,581 per tonne, within sight of a three-month low of $1,573 per tonne touched last week. December London cocoa settled 13 pounds or 0.6 percent up at 2,171 pounds per tonne. "Short-term indicators suggest the potential for subsequent gains towards the 2,200 pounds area, while resistance holds near July's high at 2,242 pounds," said Myrto Sokou, a senior research analyst with Sucden Financial.
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