(Updates throughout; adds comments, detail, NEW YORK to dateline)
NEW YORK/LONDON, May 9 (Reuters) - Robusta coffee futures fell more than 3 percent on Wednesday, after a wave of producer hedging halted the market’s recent advance, while cocoa prices stumbled on chart-inspired selling and headed for a correction.
* July robusta coffee settled down $47, or 2.6 percent, at $1,747 per tonne, falling to a session low of $1,740.
* Dealers said the market’s recent advance above $1,800 attracted heavy producer hedging Tuesday, which knocked prices lower and encouraged follow-through selling.
* Continued dry weather in Brazil also weighed on prices, said Radiant Solutions’ Donald Keeney.
* “The rains continue to deteriorate in the longer-range forecasts for central and northern Brazil. That region will likely remain on the dry side,” he added.
* Dealers also pointed to the weaker Brazilian real.
* A weaker real encourages producers to sell dollar-denominated commodities, although it typically affects Brazil’s larger arabica coffee market.
* “Because there’s a good conillon crop this year and there’s availability, the real does matter this time around,” one dealer said.
* July arabica coffee settled down 0.85 cent, 0.7 percent, at $1.1875 per lb., seeing a two-week low, $1.1985.
* “It’s in the process of trying to set a base for a rally back,” said Jack Scoville, vice president of Price Futures Group.
* July New York cocoa settled down $3, or 0.1 percent, at $2,770 per tonne, pressured by speculative selling in modest volumes after prices slipped below technical support levels hitting $2,686, its lowest since April 16.
* The market has rallied since the start of the year, on momentum-driven fund buying.
* “It’s a good chance that we’ll see a multi-week correction,” said Shawn Hackett, president of Hackett Financial Advisors, along with other traders.
* July London cocoa settled down 10 pounds, or 0.5 percent, at 1,924 pounds per tonne.
* July raw sugar settled down 0.27 cent, or 2.3 percent, at 11.29 cents per lb.
* This unwound some of the gains made Tuesday.
* “Expectations of high ethanol production continue and some still see this as a potential savior for sugar,” Nick Penney, senior trader at Sucden Financial, said in a market update.
* Louis Dreyfus Co BV projects a sharp drop in the world sugar supply surplus in 2018/19, contrary to many market projections, on expectations that India won’t increase from the huge output this year that caught the global sugar trade by surprise.
* August white sugar settled down $3.70, or 1.1 percent, at $323.90 per tonne. (Reporting by Renita D. Young and Ana Ionova Editing by Susan Fenton and Cynthia Osterman)