London, Dec 12 - Coffee was mostly lower on Friday along with sugar and cocoa futures which fell on investor and fund selling after the collapse of a $14 billion rescue plan for U.S. automakers deepened worries over global recession.
"It (failure of bailout) soured the tone a little bit," said Nick Hungate, a soft commodities trader with Rabobank. "The economic situation is weighing on commodities generally."
The fundamental backdrop in coffee is broadly neutral, auguring for a sideways trend in prices in the near term, although dealers said external market news was likely to be a key driver for futures prices.
Dealers said volume in robustas was boosted by a 5,000 lot trade in March/May with the former month at a $13 discount.
March robustas stood $22, or 1.3 percent, lower at $1,663 a tonne at 1527 GMT. January bucked the trend and rose $1 to $1,906, boosted by concern about short-term supply tightness.
Dealers said, however, there was talk of a pick-up in shipments from Vietnam for delivery against the contract which expires on January 30.
March arabicas on ICE were off 0.9 cent or 0.75 percent at $1.1185 per lb at 1530 GMT.
DTN Meteorlogix said widely scattered showers and thundershowers would continue in Brazil on Saturday through Monday.
Cocoa futures fell on producer sales, pressured by the falls of other commodities after the failure of the rescue plan for U.S. automakers, although the weak pound could limit losses in London futures, cocoa dealers said.
"Hedge related selling is coming through," one said.
Sterling hit a record low against the euro and a currency basket on Friday as risk aversion surged, putting pressure on the UK currency where sentiment was already dampened by a gloomy economic outlook.
London December cocoa goes off the board on Friday, and dealers talked of brisk rollover business.
Benchmark ICE March cocoa was down $16 or 0.7 percent to stand at $2,384 per tonne at 1531 GMT.
High demand and a shortage of cocoa beans drove farmgate prices in top producer Ivory Coast higher last week, farmers and exporters said.
ICE raw sugar futures fell with other commodities, led by oil.
Oil fell below $44 a barrel on Friday, after the collapse of a $14 billion rescue plan for U.S. automakers caused heavy losses across global financial markets and Goldman Sachs predicted oil could drop to $30 a barrel.
"Oil is the bellwether for commodities in general, and is weighing on sugar," Hungate said.
ICE March raw sugar was down 0.28 cent or 2.35 percent to 11.61 cents per lb at 1532 GMT.
London white sugar futures fell in light volumes in sympathy with raw sugar and other commodities.
London March white sugar was down $9.9 or 3 percent to $318.70 per tonne at 1533 GMT.
Grain processor Bunge Ltd and Japanese trading house Itochu Corp said on Thursday they will build a sugar cane mill in Brazil's Tocantins state.