London, July 21 - Sugar and coffee prices eased on Monday, extending the steep losses of the last few days as heightened fears of an economic slowdown weighed on commodity markets, dealers said.
Cocoa prices edged up slightly in a modest rebound but remained sharply below levels traded a couple of weeks ago.
"There seems to be general concern about global growth and I don't think there is a commodity which has stood up to the selling in the last couple of weeks," said Jaspal Phull, research analyst with Stenham Asset Management.
October raws on ICE were off 0.13 cents at 12.38 cents a lb at 1505 GMT. The contract has fallen nearly 14 percent after touching 14.35 cents on July 3.
"I don't think there is anything specific to sugar. It has just got caught up with the rest of the commodities," Phull of Stenham said.
October whites in London fell $3.10 to $355.00 a tonne.
Coffee prices also fell with September arabica futures on ICE down 0.45 cents at $1.3730 per lb.
The contract has fallen 12 percent since trading above $1.56 per lb on July 3.
FUNDS LIQUIDATE LONGS
Dealers said softs got off to a very strong start to the year but investment funds now appeared to be reducing long positions in a whole range of commodities, including oil, due to concern that an economic slowdown could reduce demand.
September robusta coffee in London fell $28 to $2,348 a tonne.
Dealers said the market should hold in a $2,200 to $2,400 range, basis September, in the short-term.
Reuters released its mid-year coffee poll on Monday with arabica prices expected to rise by the end of 2008, boosted by a weak dollar and the prospect of a cyclically smaller Brazilian crop in 2009/10.
Cocoa posted modest gains but remained on the defensive.
September cocoa on ICE rose $18 to $2,817 a tonne but stood 14 percent below a contract high of $3,290 set on July 1.
Dealers said the market had become oversold after a sharp fall in prices last week after news of a larger than expected drop in the U.S. second quarter grind.
December cocoa in London rose 2 pounds to 1,459 a tonne but stood well below the day's high of 1,492 pounds.
Arabica coffee futures are expected to rise by the end of the year, boosted by a weak U.S. dollar and the prospect of a cyclically smaller Brazilian crop in 2009/10, a Reuters poll showed on Monday.