LONDON: Raw sugar futures on ICE fell sharply on Thursday and arabica coffee also dropped as a weak Brazilian currency weighed on both commodities.
SUGAR
July raw sugar fell 0.47 cents, or 3.85 percent, to 11.73 cents per lb by 1352 GMT, after hitting a low of 11.71 cents, the weakest price for the front month since May 21.
Dealers said the weakness of Brazil's real currency helped put the market on the defensive, making sales more attractive in local currency terms to producers in the world's top exporter.
"We broke Monday and Tuesday lows (of 11.86 and 11.88 cents respectively) and there were a few sell-stops that went off," one London dealer added.
India's decision to build a buffer stock and grant soft loans worth 44.4 billion rupees ($661 million) to help millers expand ethanol output capacity had been expected but did provide some background support.
"The steps are likely to cut down on excess supplies and tighten the market," ING said in a market note.
August white sugar fell $8.70, or 2.5 percent, to $338.60 a tonne.
COFFEE
July arabica coffee was off 0.55 cent, or 0.5 percent, at $1.1770 per lb after dipping to a low of $1.1740, the contract's weakest level since May 18.
Dealers said the weak real contributed to the decline although the pace of producer selling in the world's top grower remained slow.
Trade in arabica coffee in Brazil has slowed to a trickle as stocks dwindle at the height of the between-harvests period and merchants are still dealing with transport disruptions following a nationwide truckers' strike.
July robusta coffee fell $14, or 0.8 percent, to $1,737 a tonne.
Indonesia's coffee premiums rose this week as the rupiah recovered from two-and-a-half-year lows against the dollar, but rising supply during the harvest capped the premiums, traders said on Thursday.
COCOA
September New York cocoa was down $16, or 0.7 percent, at $2,341 a tonne with the market drifting towards the prior session's three-month low of $2,327.
September London cocoa fell 11 pounds, or 0.65 percent, to 1,693 pounds a tonne. The second position fell to a three-month low of 1,679 pounds on Wednesday.
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