Prices were on track for a monthly loss of about 10 percent, in contrast with the positive territory achieved by most other commodity and energy markets. "It makes a change as I think it was the best-performing commodity last year (when it rose nearly 30 percent)," one London dealer said.
The market had risen sharply in late 2018, boosted partly by the threat of crop-damaging weather in West Africa. "The fundamental picture isn't so bullish now, the threat of dry weather seems to be receding. (Port) arrivals (in Ivory Coast) have been beyond expectations. I suppose it is only natural that prices have fallen," the dealer added.
May London cocoa was down 3 pounds, or 0.2 percent, at 1,594 pounds a tonne after equalling the previous session's seven-week low of 1,589 pounds. March raw sugar was up 0.25 cents, or 2 percent, at 12.78 cents per lb. Dealers said the market was boosted by strength in crude oil prices and a strengthening in Brazil's real currency.
Latin American currencies lit up on Thursday as the dollar weakened after the US Federal Reserve left borrowing costs unchanged and signalled a dovish tone. "We're getting buffeted around on the back of macro (macroeconomic influences). There is more dovish sentiment out of the Fed and we've had a little bit of a rally," one London dealer said.
A stronger Brazilian real reduces prices in local currency terms for commodities such as sugar and coffee and can deter producer selling. March white sugar rose $2.70, or 0.8 percent, to $342 a tonne. March arabica coffee was up 2.15 cents, or 2.1 percent, at $1.0420 per lb, also supported by the strength of Brazil's currency.
March robusta coffee was up $15, or 1 percent, at $1,542 a tonne. Coffee shipments from Vietnam are expected to fall sharply next week because of the Lunar New Year holiday, while trade in Indonesia is being curbed by low stocks and won't pick up until March.