This was the contract's sixth negative close in seven sessions. Prices were pressured as the Brazilian real slid to its lowest against the US dollar in nearly a year. Some traders cited comments from Brazil's central bank president that the currency's broader, recent weakness had been "well within" normal ranges. The currency rebounded later in the session after the central bank offered to sell dollars on the spot market.
The market was also pressured by expectations that output from second-biggest producer India might not be as low as some had initially thought, thanks to increased rain there. The market is also awaiting news from India on the terms under which it will extend its sugar export subsidy. Marex Spectron said while it expects the new subsidies will leave Indian exports little changed between 3-5 million tonnes next season, this is nevertheless a bearish factor.
October white sugar settled down $4.30, or 1.4%, at $306.10 per tonne, after setting a low for the monthly contract of $305.20 per tonne. December arabica settled down 0.35 cent, or 0.4%, at 97.15 cents per lb, also pressured by the real's slide. Losses were limited, however, by signals that supplies this year might not be as plentiful as had been earlier forecasted. Brazilian coffee cooperatives said in a statement on Monday that poor weather conditions would negatively affect the 2019 and the 2020 crop.
November robusta coffee settled up $25, or 1.9%, at $1,339 per tonne. December New York cocoa settled up $9, or 0.4%, at $2,247 per tonne. "We're seeing more trade and possibly more industry interest, and there's the impression of not much (selling from) origin, so that's allowed the market to lift," one dealer said. Weather prospects in West Africa continue to improve, however. Above-average rain last week was expected to boost the start of Ivory Coast's October-to-March main crop. December London cocoa settled down 1 pound, or 0.1%, at 1,716 pounds per tonne.