London, Nov 3 - Coffee and sugar futures consolidated on Monday, supported by a weak dollar and firmer oil prices, while London cocoa slipped on a stronger pound as markets focused on efforts to spur global economic activity.
Following rate cuts from the Fed, China and Japan last week, the European Central Bank, Britain and Australia are expected to cut interest rates by at least 50 basis points this week. [ID:nL3575298
Coffee dealers said roaster buying was running into Vietnamese origin selling in robustas. Vietnam is the world's top robusta coffee producer.
"Near term, the outlook is neutral. The fund position is fairly small," one London robusta coffee trader said.
January robusta coffee rose $9, or 0.6 percent, to $1,612 per tonne in moderate volume of 2,302 lots at 1144 GMT.
December arabicas reversed early gains and were down 0.1 cent or 0.09 percent to $1.1290 per lb at 1148 GMT.
Vietnam's main agricultural area, including the Central Highlands coffee belt and the Mekong Delta rice basket, has not been affected by floods in the country, although rain disrupted coffee harvesting.
ICE raw sugar and London white sugar futures rose, buoyed by the weak dollar, stronger oil and firmer stock markets underpinned by expectations of further rate cuts this week.
ICE March raw sugar traded up 0.07 cent to 12.09 cents a lb at 1149 GMT.
London December white sugar was up $1.0 or 0.3 percent to $335.20 per tonne in tiny volume of 123 lots.
Dealers said tightening global supplies of the sweetener were likely to support prices into 2009.
Sterling-denominated London cocoa futures rose on a stronger pound with the market's attention focused on an expected cut in interest rates of at least half-a-point by the Bank of England later in the week.
Dealers voiced concerns over a possible cut-back in demand for cocoa and chocolate products due to the economic downturn.
"Consumption considerations are a major factor for cocoa right now," one cocoa dealer said.
Benchmark ICE December cocoa futures were steady at $2,053 per tonne at 1152 GMT, while London March cocoa was down 11 pounds or 0.8 percent to 1,320 pounds per tonne in slim volume of 1,006 lots.
Cocoa arrivals at Ivory Coast's port of San Pedro reached 21,840 tonnes from Oct. 1 to 19, according to data from the Coffee and Cocoa Bourse (BCC) obtained by Reuters on Monday.