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imageNEW YORK/LONDON: ICE arabica coffee tumbled to a near four-year low in its biggest loss since July and raw sugar futures dropped the most since October, under pressure from the weakening Brazilian real and a broad commodities and financial markets selloff.

ICE cocoa futures dropped to a two-month low, as world markets extended losses.

Both ICE arabica coffee and raw sugar futures posted their biggest daily losses this year as the tracked with the tumbling Brazilian real, dealers said.

That worsened losses seen amid a broad-based selloff.

Bonds, shares and commodities took a hit after news that the US Federal Reserve would start winding down its stimulus package and data pointing to slower growth in China.

September arabica coffee futures on ICE Futures US finished down 6 cents, or 4.8 percent, at $1.1835 cents per lb in the second month's biggest one-day loss since late July.

Earlier, it tumbled as much as 5.8 percent to $1.1710 per lb, the second month's weakest level since July 2009.

"We got pushed below support, and that's snowballed into further losses," said Art Liming, a futures strategist for Citigroup, pointing to sell-stop orders below the $1.22 per lb level.

The weaker Brazilian real encourages origin selling of dollar-traded commodities in the world's top grower of both sugar and arabica coffee, as it boosts local incomes from the sale.

Coffee prices have hit recent lows on expectations of bumper output in Brazil, the top arabica producer.

September robusta coffee futures on Liffe fell $59, or 3.3 percent, to close at $1,736 a tonne in the second-month contract's biggest down day since April.

The contract fell to $1,704 on Friday, the lowest level for the second month since October 2010.

"Arabica is dragging robusta with it," said a European trader, referring to the coming crop from top grower Brazil.

Dealers said the falling robusta prices would encourage roaster buying and lend support to the market.

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