RTRS:SOFTS-Coffee, sugar drift lower as dollar strengthens
LONDON Dec 19 (Reuters) - Arabica coffee, raw sugar and cocoa futures on ICE were all slightly lower in early trade on Monday as the dollar edged up following the death of North Korean leader Kim Jong-il.
COFFEE
* Arabica coffee futures on ICE eased slightly in early trade as the market consolidated after the prior session's fall to a one-year low.
* March arabica coffee on ICE was off 0.20 cent or 0.1 percent at $2.1490 a lb at 0905 GMT. The contract dipped to a one-year low for the second month of $2.1420 on Friday.
* Dealers said the recent weakness had been mainly sparked by a broad-based setback across commodity markets linked to the euro zone debt crisis and the strengthening dollar.
* March robusta coffee on Liffe was down $4 or 0.2 percent at $1,893 a tonne.
* Speculators switched to a net short position in arabica coffee futures and options on ICE Futures U.S. as the market dropped to a one-year low in the week ended Dec. 13, U.S. Commodity Futures Trading Commission data showed on Friday.
SUGAR
* ICE raw sugar futures were slightly weaker although prices held above last week's 6-1/2 month low.
* Benchmark March raw sugar futures traded 0.15 cent or 0.65 percent lower at 22.93 cents a lb. The contract fell to 22.62 cents on Thursday, the lowest level for the front month since June.
* Dealers said the market could stabilise around current levels with the scope for a significant rebound limited by large crops in most key northern hemisphere producing countries.
* India has produced 4.6 million tonnes of sugar between Oct. 1 and Dec. 15, the Indian Sugar Mills Association, a producers' body said on Monday, up 17.9 percent year-on-year.
* March white sugar futures on Liffe fell $1.80 or 0.3 percent to $597.90 per tonne.
* Thai raw sugar premiums may remain steady this week after falling in the previous weeks because of concern that supplies of the sweetener from India will increase, boosting competition.
COCOA
* Cocoa futures also fell.
* March cocoa on ICE was off $13 or 0.6 percent at $2,088 a tonne.
* Dealers said the market was looking to stabilise with last week's sharp rally from a three-year low running out of steam.
* Ivory Coast from January 2012 will start the forward selling of future cocoa crops, according to a document seen by Reuters which outlines government plans to reverse a decade of liberalisation in the world's largest grower.
MARKET NEWS
* European stocks and the euro were under pressure on Monday in the wake of a fresh rating agency warning on the euro zone debt crisis, while news of the death of North Korean leader Kim Jong-il sparked fears of regional instability in Asia.
* The dollar held some of the gains it made on Monday as it spiked higher on safe-haven bids following news of the death of North Korean leader Kim Jong-il.
* Brent crude futures fell below $103 on Monday, as ongoing concerns over the euro zone debt crisis and the prospect of regional instability after the death of North Korea's leader weighed on riskier assets. (Reporting by Nigel Hunt; Editing by Alison Birrane)