NEW YORK/LONDON, Jan 5 (Reuters) -
ICE raw sugar futures hit a 3-1/2-week low on Thursday as supply prospects in key producing countries continued to improve, although
rising oil prices
kept losses in check.
SUGAR
* March raw sugar settled down 0.2 cent, or 1%, at 19.34 cents per lb, having hit a low of $19.32.
* Dealers said raw sugar, which hit its highest since February 2017 in late December, is yet to find support as funds slowly liquidate longs.
* They noted good rains in top producer Brazil suggest a possible early start to the new harvest, with higher production widely expected. Also, the Brazilian government's fuel policy is set to prompt cane mills to favour sugar output over ethanol.
* At the same time, production in India is progressing well and the Thailand harvest is off to a good start.
* March white sugar fell $8.40, or 1.5%, to $534.70 a tonne, hitting a three-week low.
COFFEE
* March arabica coffee settled down 0.75 cent, or 0.5%, at $1.6055 per lb after dipping to a three-week low of $1.5925 on Wednesday.
* Overall, arabica is under pressure from favourable weather for crop development in top producer Brazil. Experts consider January as a key month to define the new crop's potential.
* "If it rains well, we can have a good production," said a Brazil-based broker.
*
Forecasts indicate
a good amount of rains for the coming days.
* Colombia's production of washed arabica coffee fell by 12% last year to 11.1 million 60-kg bags because of extended wet weather, data showed.
* March robusta coffee fell $41, or 2.2%, to $1,832 a tonne.
* Coffee prices in top robusta producer Vietnam rose this week on weather concerns, while the Indonesian market remained subdued on weaker supplies.
COCOA
* March New York cocoa rose $14, or 0.5%, to $2,617 a tonne.
* U.S. grocery chain Trader Joe's was sued on Wednesday by a consumer who accused the company of misleading and endangering shoppers by selling dark chocolate that contains harmful levels of lead and cadmium.
* March London cocoa rose 24 pounds, or 1.2%, to 2,070 pounds per tonne. (Reporting by Marcelo Teixeira and Maytaal Angel; Editing by Shounak Dasgupta and Devika Syamnath)