London, Oct 27 - Coffee and cocoa futures fell on Monday, spooked by tumbling Asian stock markets, a stronger dollar and weaker oil prices as fears over a global recession intensified.
The dollar hit a two-year high against the euro as investors scrambled to shed riskier investments. Investor fears that possible further coordinated action to calm markets would not be enough to fend off a global recession sent shares from London to Tokyo reeling, while the yen continued to surge.
"The strengthening of the dollar against the Indonesian and Vietnamese currencies is bringing hedging to the London market," a robusta coffee dealer said.
London January robustas fell to a 17-month low, basis second month, of $1,598 per tonne. January stood at $1,613 per tonne, down $55 or 3.3 percent, in modest volume of 3,280 lots at 1142 GMT. Dealers saw support at $1,550.
ICE December arabicas were down 1.9 cents or 1.75 percent to $1.0675 per lb. Dealers saw support at $1.0 per lb.
London cocoa futures probed just above eight-month lows as recessionary fears dampened the outlook for soft commodities.
U.S. cocoa futures held just above Friday's 11-month lows, on pressure from index fund selling dictated by the stronger dollar.
"The London market has been dragged down by New York," a London cocoa trader said. "People want to be out of New York because of the stronger dollar."
Benchmark ICE December cocoa traded down $77 or 3.9 percent at $1,900 per tonne, hovering just above Friday's 11-month low of $1,867.
Cocoa farmers in the world's top grower, Ivory Coast, enter a second week of striking over prices, producers' unions said on Monday.
Farmers in the important southwestern region around the port of San Pedro, which handles nearly half the country's output, and in the less important eastern region began disrupting deliveries of cocoa last week to press their demands for higher prices.
ICE raw sugar fell almost 2 percent, pushed lower by the stronger dollar, weak oil prices and worries over the outlook for global demand.
ICE March raw sugar was down 0.19 cent, or 1.8 percent, to 10.57 cents a lb at 1205 GMT, just above Friday's four-month lows, basis front-month.
London benchmark December white sugar futures traded lower, just above Friday's 10-month low of $294.00 per tonne, basis front-month.
December was down 40 cents to $298.30 per tonne in tiny volume of 242 lots.
"The pessimism of the macro environment kept sugar on its downward trajectory," a European broker said in a report.