NEW YORK/LONDON: Raw sugar futures on ICE fell nearly 3 percent to a six-week low on Monday, dropping for the fifth straight session on chart-based sell signals and as funds scaled back a huge net long position. Coffee and cocoa prices also weakened.

March raw sugar settled down 0.59 cent, or 2.7 percent, at 21.57 cents per lb, after dipping to a low of 21.55 cents, the weakest for the contract since Sept. 16.

The market sharply extended losses after Friday's settlement below the 50-day moving average, marking the biggest one-day loss since Oct. 6.

Speculators reduced their bullish sugar position for the fourth straight week, data showed late on Friday.

"The positions report suggests investors had sold some of their long position as of last Tuesday. Investors have probably sold some since, too," said Commonwealth Bank of Australia analyst Tobin Gorey.

"Nonetheless, investors' long position is probably still huge. And, when the market is faltering, the position lacks a raison d'etre."

The market shrugged off a report from Brazil cane industry group Unica, which said that the cane crush in the key center-south region was lower than expected.

"The Unica news has been overshadowed by the technical breakdown in the sugar futures with prices under pressure from the opening," said Agrilion Commodity Advisers in a note.

December white sugar settled down $10.10, or 1.7 percent, at $579.40 per tonne. The December/March spread, however, widened to a $9 premium, a contract high.

Cocoa futures also fell, with nearby premiums weakening on waning concerns about supply tightness after a slow start to the main crop season and good rainfall across most of Ivory Coast's top cocoa-growing regions.

March New York cocoa settled down $5, or 0.2 percent, at $2,643 per tonne, and its premium to March slipped to as low as $80 from $108 at Friday's close.

The market ignored weekend violence in Ivory Coast as it did not impact the movement of cocoa, traders said.

March London cocoa settled down 5 pounds, or 0.2 percent, at 2,198 pounds per tonne.

Arabica coffee futures also slipped, with December closing down 1.35 cent, or 0.8 percent, at $1.6415 per lb.

Dealers said this was largely a technically driven correction after prices rose to the highest since February 2015 on Friday, when total open interest rose for the 16th straight session, reaching a record 211,047 lots, ICE data showed.

January robusta coffee settled down $3, or 0.1 percent, at $2,184 per tonne.-Reuters