Arabica coffee came off a 13-1/2 year top on Wednesday and raw sugar slid from a 30-year peak due to a stronger dollar and bouts of profit-taking as both markets took a breather after rip-roaring rallies. Despite the sell-off, coffee is still the third biggest winner in the Reuters Jefferies Commodity index in the year to date, having risen over 55 percent.
A stronger greenback would tend to put pressure on dollar-denominated commodities because it makes them more expensive for investors. New York's December arabica coffee contract dove 4.8 cents to close at $2.1495 per lb. On Tuesday, the contract ended at $2.1705 per lb, its highest settlement finish in 13-1/2 years.
New York's March raw sugar contract dropped 0.30 cent to close at 32.81 cents per lb, breaking a six-day streak of finishing at a 30-year high. On Tuesday, the contract ended at 33.11 cents in the highest settlement close for raw sugar since early in 1981. New York's March cocoa contract fell $29 to close at $2,855 per tonne.