Raw sugar, arabica coffee and cocoa futures finished lower Monday as the strong dollar kept the softs complex on the defensive for most of the day. Worries over the euro zone debt crisis kept the softs complex depressed in light dealings. October raw sugar dropped 0.44 cent to settle at 28.92 cents per lb.
Sweetener pressured by strong dollar, said dealers. Losses in market pared somewhat by likely smaller Brazilian cane crop, port congestion delaying shipments of sugar, and brisk cash demand.
"The market is also seeing some profit-taking because we are a bit top heavy at 29 cents," a dealer said. Market also closely monitoring monsoon conditions in top consumer India which could impact their production of sugar. September arabica coffee futures fell 4.25 cents to finish at $2.5905 per lb. Market comes under pressure from firm dollar. Safe-haven buying hoisted dollar up as worries over impact of euro zone debt on global economic growth weighed on bean values, said traders. Market also hit by profit-taking in very thin dealings - traders.
Coffee areas in top grower Brazil will stay warm and dry over the next week, with no new waves of cold expected. Key September cocoa futures declined $41 to settle at $3,050 per tonne. Firm dollar pressured bean values - brokers. Ivorian cocoa production is expected an all-time record and hit 1.5 million tonnes in the current season. Combined with cocoa arrivals at ports in top grower Ivory Coast of over 1.3 million tonnes, cocoa futures pressured by ample supplies as well. Market looking toward release of grind data later in the week.