Aug. 25 (Bloomberg) -- Coffee declined in New York on signs of increased supplies in Colombia. Colombian coffee prices have dropped 5 percent this week, erasing gains of the past two weeks, according to data from the International Coffee Organization. Prices in New York jumped to a 12-year high this week, partly on speculation of crop damage in Colombia, the biggest grower of arabica beans after Brazil. Colombia “will probably have one of its best harvests in years in the next crop year starting in October,” Eugen Weinberg, the head of commodity research at Commerzbank AG in Frankfurt, said in a note today. Arabica coffee for December delivery fell 2.7 cents, or 1.6 percent, to $1.6575 a pound at 8:40 a.m. in New York on ICE Futures U.S. Robusta coffee dropped 1.4 percent to $1,617 a metric ton on NYSE Liffe in London. White sugar for October delivery climbed 1.4 percent to $578.10 a metric ton on NYSE Liffe, and raw sugar for October delivery declined 1 percent to 19.95 cents a pound. Sugar-cane damage in Pakistan may equal 7.5 million metric tons, Swiss Sugar Brokers in Rolle, Switzerland, said in a report dated yesterday. Flooding in Pakistan has displaced at least 20 million people, submerged 1,500 kilometers (930 miles) of roads, destroyed at least $1 billion of crops and killed 10 million head of livestock. Cocoa for September delivery dropped 0.8 percent to 2,076 pounds ($3,202) a ton in London. The December contract in New York declined 1.2 percent to $2,778 a ton. --With assistance from Stuart Wallace in London and Lucia Kassai in Sao Paulo. Editors: Dan Weeks, John Deane. To contact the reporter on this story: Alistair Holloway in London at aholloway1@bloomberg.net. To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net.

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