By Chris Prentice and David Brough

NEW YORK/LONDON, Nov 27 (Reuters) – ICE arabica coffee fell on Friday, hurt by a stronger U.S.dollar and weakened Brazilian real, as raw sugar edged up, bucking the currency pressure on talk of wet weather hampering harvesting in Brazil and lower-than-expected output in India.
Cocoa rose slightly in thin trade after U.S.markets were closed on Thursday for the Thanksgiving holiday.

ICE March arabica coffee KCH6 futures closed down 1.95 cents, or 1.6 percent, at $1.236 per pound, ending the week slightly lower. The Brazilian real retreated against the U.S. dollar BRL= and the dollar index .DXY neared March’s multi-year highs above 100. The currency gyrations encourage selling of greenback-traded commodities such as arabicacoffee and sugar in Brazil, the world’s top producer of both, as it makes them worth more in local
currency terms.



“It’s a quiet day and the real’s losing against the dollar; that’s causing a little selling,” said a U.S.broker.
January robusta coffee futures LRCc2 ended down $4, or 0.3 percent, to $1,514 per tonne, not far from last week’s two-year low of $1,494. Rabobank analysts said they see the robusta market moving toward a deficit in 2016/17.
“We remain quite bullish on robusta prices,” Rabobank said in a report on the outlook for agricultural commodities in 2016. “Despite a significant global arabica surplus, the robusta deficit will cause physical tightness in the second half of 2016.” ICE March raw sugar futures SBc1 closed up 0.06 cent, or 0.4 percent, at 14.97 cents per lb. Prices still ended the week down after a selloff from Tuesday’s 10-month peak of 15.78 cents. “Going into next year, production won’t be enough to meet consumption around the world,” said a London broker, noting fundamentals behind the sugar buying.
He noted market talk that Indian millers had agreed to a modest tonnage of raw sugarexports when prices were near their peak. March white sugar LSUc1 closed up 20 cents, or 0.05 percent, at $404.60 a tonne. Cocoa futures were supported by technical buying, even as the International Cocoa Organization (ICCO) forecast a surplus of 36,000 tonnes in 2014/15, versus a previous estimate of a deficit of 15,000 tonnes.

London March cocoa LCCc2 finished up 10 pounds, or 0.4 percent, at 2,273 pounds a tonne, ending the week down after touching a 4-1/2 year peak at 2,317 pounds on Nov.20.
ICE New York March cocoa CCH6 settled up $6, or 0.2 percent, at $3,310 per tonne.

(Editing by Jason Neely and Frances Kerry)