Raw sugar slumps to four-month low, arabica coffee climbs

Raw sugar futures on ICE fell to a four-month low on Monday, weighed partly by the recent strength of the dollar and an improving outlook for the next cane crop in Centre-South Brazil.

SUGAR

* Raw sugar SB1! settled down 0.32 cent, or 1.7%, at 18.90 cents per lb after hitting a four-month low of 18.70 cents.

* Dealers said bearish factors included an improving outlook for the next cane crop in Centre-South Brazil following recent rainfall in the region.

* They also noted there could be more available sugar from Thailand following a rise in production and restrictions on liquid sugar (syrup) shipments to China.

* "Bulls struggle for arguments," said independent analyst Claudiu Covrig. "Prompt demand is lacking and the future looks oversupplied," he added.

* March white sugar SF1! fell 1.4% to $496.40 a metric ton after slumping to a low of $492.70, the weakest level in nearly two years.

COFFEE

* Arabica coffee KC2! settled up 2.1 cents, or 0.6%, at $3.2595 per lb​​ after hitting a 3-1/2 week high of $3.3385.

* Dealers said the market's main focus remained the size of the next crop in top producer Brazil which will likely hinge on the extent of damage caused by a drought last year.

* They noted a build-up in exchange stocks could help to keep a lid on prices. They were at 977,110 bags as of Jan. 10, sharply up from 258,066 bags a year ago.

* Robusta coffee RC2! fell 1.3% at $4,902 a ton.

COCOA

* New York cocoa futures on ICE CC1! ​​settled up $358, or 3.4%, to $10,928 a ton.

* Dealers noted port arrivals in Ivory Coast were continuing to run slightly above last year's pace although a slowdown is anticipated in coming months following recent dry weather.

* Farmers from Ivory Coast's main cocoa growing regions are worried because a persistent lack of rain could weigh on the April to September mid-crop, they said on Monday.

* Dealers said the European and North American fourth quarter grind, scheduled to be issued on Thursday, would provide a short-term focus providing indications on the extent to which high prices are curbing demand for cocoa.

* London cocoa C1! rose 3.1% to 8,847 pounds per ton.