Raw sugar futures on ICE erased early gains on Monday and stood near last week's 11-month low, while arabica coffee and cocoa eased, pressured by a weaker euro.

Fears of a Europe-wide recession undermining political will to tackle the region's debt crisis gripped financial markets on Monday, sending shares and the single currency lower and driving demand for safe-haven assets.

Raw sugar futures were pushed lower by the stronger dollar, but underpinned by news of Egyptian physical buying of the sweetener, as the state-owned buying group took advantage of the recent run of lower prices, dealers said.

Egypt's state-owned Sugar and Integrated Industries Company (SIIC) bought in a weekend tender 50,000 tonnes of raw sugar at $534 per tonne cif for July shipment, an SIIC source said on Monday.

The reduction of a long position held by speculators, supported the market.

"The market having been oversold, and with the funds having liquidated long positions, there is less selling pressure," said James Kirkup, head of sugar brokerage at ABN AMRO Markets.

Speculators slashed their net long position in raw sugar by nearly half in the week to April 17, according to U.S. Commodity Futures Trading Commission (CFTC) data.

"We expect it (market) has more to do on the downside, and we are pegging the next area to target at 21.10 cents, 21.00 and 20.70 basis July in the medium term," said Nick Penney of brokerage Sucden Financial.

May raw sugar on ICE was down 0.05 cent or 0.2 per cent at 21.88 cents a lb at 1147 GMT. The contract dipped to 21.83 cents a lb on Friday, the lowest level for the front month since May 25, 2011.

London August white sugar futures firmed 30 cents or 0.05 per cent to $575.20 per tonne in light volume of 703 lots.

Arabica coffee futures eased, weighed by the stronger dollar and prospects for a big harvest in top producer Brazil.

"From our perspective the market is a little oversold and we might see a little bit of a bounce back," said Keith Flury, a soft commodities analyst with Rabobank.

July arabicas on ICE were down 1.4 cent or 0.8 per cent at $1.7755 per lb, above an 18-month low, basis second month, of $1.7390 per lb touched a week ago.

Benchmark Liffe July robusta coffee futures were down $10 or 0.5 per cent at $2,046 per tonne in moderate volume of 2,818 lots.

Indonesian coffee beans are set to trade at high premiums above $100 this week because of aggressive purchases from local roasters and tight supply, while a drop in New York futures could lift the value of Thai raw sugar, dealers said on Monday.

Speculators extended net long positions in cocoa and robusta coffee futures and options on NYSE Liffe in the week to April 17, exchange data showed on Monday.

ICE cocoa futures eased in light volumes, weighed by the firmer dollar and ample West African mid crop supplies.

"Concerns about supply over the next crop may be creeping in," Flury said.

July cocoa on ICE was down $26 or 1.2 per cent at $2,243 per tonne. On April 11, the contract had dipped to $2,056, the lowest level for the second month since January 9.

July cocoa on Liffe traded down 12 pounds or 0.8 per cent at 1,479 pounds a tonne in modest volume of 3,537 lots.