London, Jan 30 - Cocoa retreated from 24-year highs on Friday on profit-taking, while raw sugar firmed on expectations of a decision to allow duty free imports of raws in India, dealers said.
Arabica coffee was down as it consolidated after its recent rise near-four month highs.
"The market needed to have a bit of a breather," said one London cocoa dealer. "A bit of hedging is being done and that's why we are off a little ... people are saying it is due a bit of a correction because it's a little over-bought."
"Twenty four year highs, it's very dangerous still," he added. "All the bullish news has been factored into the market -- you can't get any more bullish ... for crying out loud, we are 2,000 pounds a tonne and we all know what gravity is like in these markets."
Cocoa prices have gained in the last three sessions as West African supply concerns helped buoy prices.
At 1252 GMT, May cocoa in London was 19 pounds lower at 1,983 pounds a tonne. The contract touched 2,023 pounds on Thursday -- a high for the benchmark since March 1985.
March cocoa on ICE was down $33 at $2,768 a tonne.
March raw sugar rose 0.04 cent to 12.63 cents a lb. The contract climbed to a peak of 13.05 cents on Monday and Tuesday -- its highest level since early October.
INDIAN DECISION AWAITED
India's government put off a decision to allow duty free imports of raws for local sales but there were strong trade expectations the move will be taken soon.
Any such move would trigger purchases from Brazil, reduce prices ahead of elections, and squeeze many domestic mills in the world's number one sugar consumer.
"The soap opera that is the Indian sugar duty continues to enthral some but is increasingly boring others," Fortis said in a note to clients, adding that there had been no official announcement to confirm changes to the import duty.
"We are now awaiting the return to India from Davos of the Commerce Minister."
Higher crude prices were also a factor in sugar's rise. Sugar sometimes tracks trends in the oil market as cane in Brazil is used to produce biofuel ethanol.
Oil firmed modestly after a nearly 2 percent fall on another round of grim U.S. economic data the previous day.
March whites in London were up $1.50 at $370.20 per tonne.
Dealers said the market continued to be underpinned by a tightening global supply balance.
Arabica coffee futures on ICE also edged lower with the market looking to consolidate after rising to the highest levels in nearly four months earlier this week.
March fell 0.90 cent to $1.2060 per lb. The contract rose as high as $1.2340 on Tuesday.
Robusta coffee futures in London were slightly lower with March down $10 at $1,712 a tonne.
Volatile January slipped $248 at $1,802 a tonne ahead of its expiry later on Friday.
"Depending how you feel, the market is consolidating or flagging," said one London coffee dealer. "I'm not very busy but I wish I was ... The volumes have been very light.
"A lot of trade concentration is on the expiring old contract ... there has been heavy focus on grading. That has consumed a lot of the trade's attention for those involved in robusta."