London, Oct 30 - Sugar, coffee and cocoa futures extended losses on Friday, weighed by a strengthening dollar as investors squared positions at the end of the month.
"My feeling is that the market needs to consolidate. We may see a bit of sideways or downward action today, with New York (ICE) moving between 22-23 cents a lb," said David Sadler, a senior sugar futures dealer.
"We're seeing profit taking from those who bought yesterday," he added, referring to Friday's downward technical correction after the market's rise on Thursday, inspired by better-than-expected U.S. Q3 GDP data.
Sugar futures have fallen in recent weeks as the dollar gained ground against a basket of currencies.
Traders also talked of Indian buying of Brazilian raw sugar cargoes at a discount to spot New York futures, which bears interpreted as signalling adequate availability of Q4 supplies.
Raw sugar futures have doubled this year, due to the combined impact of India's shift to become a net importer of sugar after a poor local crop, and concerns over the impact of excessive rains on cane yields in top producer Brazil.
ICE March raw sugar futures fell 0.27 cent to 22.54 cents a lb at 1450 GMT, while London (Liffe) December white sugar was down $3.7 to $572.90 per tonne in low volume of 1,674 lots.
DOLLAR UPTURN
Cocoa dealers also talked of position squaring before the end of the month, adding that the upturn of the dollar could add to selling pressure later in the session.
"Technically, both charts (New York and London) suggest that profit taking is taking place at the end of the month," said Ricardo Santos, head of the agri-commodities brokerage at BNP Paribas Fortis.
Cocoa dealers took stock of the latest bean arrivals data from top supplier Ivory Coast, noting that they were sharply up on last year.
Cocoa arrivals at ports in Ivory Coast hit 121,155 tonnes between the start of the season on Oct. 1 and Oct. 25, reflecting new shipments and a revision of the previous tally, according to official figures.
Cocoa dealers talked of concerns over the weak demand outlook, although the latest upbeat U.S. wealth data was a welcome signal for consumption.
ICE December cocoa was down $43 at $3,312 per tonne, while Liffe March cocoa was down 9 pounds at 2,173 pounds per tonne in moderate volume of 2,862 lots.
ICE coffee futures fell on investor selling pressured by the greenback, but dealers said volumes were light in the absence of fresh leads to drive the market.
Traders remained focused on the arrival of the new crop in top robusta producer Vietnam, with the near-term supply outlook looking ample.
ICE December arabica futures were down 1.60 cent to $1.3515 per lb, while Liffe November robustas were down $11 to $1,395 per tonne.