We present results of a monitoring campaign of the high-mass X-ray binary system 4U 1700-37/HD 153919, carried out with XMM-Newton in February 2001. The system was observed at four orbital phase intervals, covering 37% of one 3.41-day orbit. The lightcurve includes strong flares, commonly observed in this source. We focus on three epochs in which the data are not affected by photon pile up: the eclipse, the eclipse egress and a low-flux interval in the lightcurve around orbital phase phi ~0.25. The high-energy part of the continuum is modelled as a direct plus a scattered component, each represented by a power law with identical photon index (alpha ~1.4), but with different absorption columns. We show that during the low-flux interval the continuum is strongly reduced, probably due to a reduction of the accretion rate onto the compact object. A soft excess is detected in all spectra, consistent with either another continuum component originating in the outskirts of the system or a blend of emission lines. Many fluorescence emission lines from near-neutral species and discrete recombination lines from He- and H-like species are detected during eclipse and egress. The detection of recombination lines during eclipse indicates the presence of an extended ionised region surrounding the compact object. The observed increase in strength of some emission lines corresponding to higher values of the ionisation parameter xi further substantiates this conclusion.
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