"It's a down day in the softs markets," said Jack Scoville, senior analyst for The Price Group in Chicago.
Base metal copper, associated with underlying economic
conditions due to its wide use in industry, led commodities lower as it tumbled 6 percent to two-week lows.
World stocks fell and the euro eased on more doubts about the euro zone's ability to devise a comprehensive plan for its debt crisis at a summit this weekend.
The German government has not ruled out postponing the European Union summit planned for this Sunday, German newspaper Die Welt reported.
December arabica coffee futures on ICE dropped 4.50 cents, or 1.9 percent, to finish at $2.3165 per lb.
"It (coffee) is trading a bit sideways with some volatility and an eye on what is going on in Europe," said Romain Lathiere, fund manager with Diapason Commodities Management.
Lathiere said there were conflicting reports about the progress of the Brazilian crop in the vital flowering phase with some raising the prospect of record production and others expressing concerns about development.
Robusta coffee futures on Liffe were also lower with January closing down $51, or 2.7 percent, at $1,848 a tonne.
Farmers in top robusta producer Vietnam were reluctant to sell beans after prices dropped in London, while premiums for Indonesian coffee revisited a record seen in August because of tight supply, dealers said.
Raw sugar futures also declined in thin volume, as investors remained cautious amid attempts to resolve the debilitating euro zone debt crisis.
Traders said when prices climb over 28 cents, basis March, cash buying dries up. But the same consumer interest seems to show up below 25/26 cents.
"We don't have the fundamentals to push sugar over 28 (cents)," said Alex Oliveira, senior sugar analyst at brokerage Newedge USA.
Sugar drew support from uncertainty about how small sugar production out of top producer Brazil is this season and the extent of flood damage in Thailand.
"The wind seems to have been taken out of sugar's sails for the time being. Funds seem to be holding back from further buying for the time being, perhaps afraid of a fall in the value of the euro and dollar strength," Nick Penney of Sucden Financial said in a daily update.
March raw sugar fell 0.17 cent, or 0.6 percent, to end at 26.80 cents per lb while December white sugar on Liffe dropped $16, or 2.3 percent, to finish at $683.00 a tonne.
INCREASING SUGAR SUPPLIES
Dealers said nearby supplies remained reasonably tight following a lower-than-expected crop in Brazil although the situation should ease as bumper crops are anticipated in most key Northern Hemisphere producing countries.
"(The) inverted market reflects sugar scarcity, especially due to the Brazilian shortfall in 2011/12," said Oscar Schaps, head of global softs at FCStone.
"Sugar prices might be pressured next year due to increasing world supply. Thailand and India should have more supply next season."
Cocoa futures also suffered a setback as the market awaited North America's third-quarter grindings due for release later on Thursday, which were expected to show a slight increase on the year.
"The world's grindings are up maybe 4 or 5 percent in 2010/11," said Steven Haws, of cocoa research firm Commodities Risk Analysis, referring to the October-September cocoa year.
This growth could be matched again in 2011/12, driven by powder demand, Haws added.
ICE December cocoa closed down $41, or 1.6 percent, at $2,562 a tonne, while March cocoa on Liffe finished down 15 pounds at 1,691 pounds a tonne.