NEW YORK, March 28 (Reuters) - Raw sugar futures settled lower on Monday, pressured by a weak commodity complex and as Libyan rebels advanced toward an important military base, while arabica coffee also finished lower.
U.S. cocoa inched higher in thin dealings as dealers were uncertain whether the Ivorian export ban would be lifted this week. Volume was light in all three markets.
RAW SUGAR
* Benchmark May raw sugar contract dropped 0.81 cent or 3 percent to finish at 27.05 cents per lb.
* Market pressured by speculative selling - brokers.
* Weakness in other commodity markets seen pushing the market lower.
* "The risk pressure is coming off because (Libyan leader Muammar) Gaddafi is losing ground," said Mike McDougall, senior vice president of brokerage Newedge USA.
* Market looking forward to next set of estimates by industry group Unica due out middle of this week.
COFFEE
* May arabica coffee futures fell 4.65 cents or 1.7 percent to settle at $2.6395 per lb.
* Market moved sideways after falling about 12 percent from a 34-year high at $2.9665 per lb, basis second position, earlier this month - traders.
* Weakening differentials on the cash market in Central America and a decreased demand by roasters, as well as weak commodity complex, weighed on market - traders.
* Volume light as recent volatility scared many out of the market and attracted some to options, where open interest is on the rise - traders.
* Speculative buying likely to increase if May reaches $2.70 and speculative selling if gets below $2.60 - one trader.
* Open interest for arabica coffee futures fell to the lowest level in more than 15 months on March 25 -- ICE.
* Arabica prices will likely stay within a range of $2.50 to $2.70/lb in the coming years due to dynamic consumption, low inventories and an uptick in output - Colombia's coffee federation.
COCOA
* Key May cocoa futures rose $6 to settle at $3,248 a tonne.
* Market up mildly, despite lower commodity complex, on increasing violence in top grower Ivory Coast and uncertainty whether the country's export ban set to expire this week will be extended - traders
* Heavy clashes broke out in the town of Duekoue, in a cocoa-producing area of western Ivory Coast, between forces loyal to incumbent Laurent Gbagbo and his rival in an election dispute.
* "This could have some longer-term effect on the markets. Farmers are worried about their lives right now not their crops, and they're ignoring their crops." - Nick Gentile, chief trading officer at Atlantic Capital Advisors in Jersey City.
* Climbing open interest shows commercials have been buying as the market fell from the 32-year high at $3,775 per tonne reached March 4 - traders.-----
