New York cocoa futures slid on Thursday as a strong dollar and ample supplies offset strong Asian grind data, while raw sugar rose to a two-month high on technical buying. March New York cocoa futures were down 1.84 percent, or $41, at $2,192 a tonne at 1518 GMT, having tumbled 2.7 percent in earlier trading.
March London cocoa was also down 0.94 percent, or 17 pounds, at 1,782 pounds per tonne. Prices were weighed by a strong dollar, which gained after Federal Reserve Chair Janet Yellen promised a "few" rises in U.S interest rates this year.
"It's very much correlated with any currency move at the moment," said one dealer.
"Today, it doesn't hold on much. It was just a couple of sell stops that were triggered and the market just sold off brutally."
The losses came despite stronger-than-expected Asian grind figures that showed processing in Malaysia, Singapore and Indonesia increased 16.9 percent in the fourth quarter of 2016 from a year earlier.
"The Asian grind came out as a surprise. It was much more than we expected, so it should have been supporting the market," the dealer said, noting the market is weighed by a strong crop outlook.
Futures have also shrugged off a tumultuous week in the Ivory Coast, where fresh unrest led to the temporary shutdown of the two main ports on Wednesday.
This forced companies, including cocoa exporters, to halt operations.
March raw sugar meanwhile extended previous gains and climbed 1.33 percent, or 0.28 cent to 21.26 cents per lb, after earlier in the session rising to its highest since mid-November.
March white sugar was also up $8.00, or 1.47 percent, at $550.50.
Buying has been driven by prices holding steady above their short-term average, dealers said.
Sugar futures rose sharply over the last few weeks on the back of worries over lower production and higher domestic prices in India.
The rally ran out of steam in recent days, however, as the market waited to see if the Indian government will lower the sugar import duty, a move it has said it doesn't plan in the near term.
Even if India lowers import duties later in the year, the fundamental boost will likely "disappoint", said Robin Shaw, sugar analyst at Marex Spectron.
Shaw also noted the market is weighed by the upcoming liberalisation of the EU sugar market, which could increase the bloc's production.
"We think the EU will spoil any bullish party," he said.
March robusta coffee futures rose $8, or 0.36 percent, to $2,253 a tonne.
March arabica coffee futures were up 0.15 cents, or 0.10 percent, to $1.4935 per lb.
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