NEW YORK/LONDON: Cocoa futures on ICE fell to the lowest levels in four months on Friday as concerns about a new COVID variety drove a risk-off move by investors across financial assets including commodities. Raw sugar hit a one-month low.

March New York cocoa closed down 4.7% at $2,396 a tonne, after plunging to $2,388 in the session, the lowest in four months.

Dealers said cocoa was caught in the broad-based sell-off in many commodities and the market was also looking technically weak with the recent uptrend now reversed.

The market had been boosted by a pick-up in demand but the latest coronavirus variant raised concerns about whether the recovery would be sustained.

Cocoa was one of the hardest hit commodities during the pandemic as chocolate consumption fell without social events, travelling and conferences.

March London cocoa fell 3.6% to 1,657 pounds a tonne, hitting as well a four-month low at 1,650 pounds.

March raw sugar closed 2.8% down at 19.35 cents per lb, extending the market’s retreat from a 4-1/2 year high of 20.69 cents set last week.

“Sugar is following crude lower as it trades to its lowest point (19.15) since Oct. 25,” said a US sugar broker. The decline accelerated as key support levels were breached including a trend line at 19.56 cents.

Falling energy prices could lead mills in top sugar producer Brazil to make more sugar and less ethanol. March white sugar fell 1.9% to $501.40 a tonne after touching a two-month low at $495.80.

March arabica coffee fell 1% at $2.4295 per lb. The market had climbed to a 10-year high of $2.4820 on Wednesday.

Coffee suffered less amid the sell-off as the market continues to derive support from declining exchange stocks as shipments from South America are delayed both by a shortage of container shipping capacity and a reluctance of producers to sell.

January robusta coffee rose 0.8% to $2,308 a tonne. Delays to the harvest in top robusta producer Vietnam remained a supportive factor.