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SOFTS-ICE arabica coffee declines, still sees 3rd straight weekly gain

(Adds background, updates prices)

NEW YORK/LONDON, Jan 5 (Reuters) - Arabica coffee, raw sugar and cocoa on ICE Futures U.S. fell on Friday with a firmer dollar helping to halt recent run-ups.

The dollar rose, undeterred by a weaker-than-expected December U.S. jobs report.

COFFEE

* March arabica coffee settled down 1.1 cents, or 0.85 percent, at $1.2845 per lb. Prices extended their retreat from Wednesday's 2-1/2 month high of $1.3135 but still managed to notch a third straight weekly gain.

* "End-of-week profit taking is being helped along by the move in the dollar," said Hector Galvan, a senior market strategist with RJO Futures in Chicago.

* November global coffee exports totalled 9.02 million 60-kg bags, down 9.2 percent year-over-year, International Coffee Organization (ICO) data showed.

* March robusta coffee settled down $4, or 0.23 percent, at $1,724 per tonne.

SUGAR

* March raw sugar closed down 0.17 cent, or 1.11 percent, at 15.08 cents per lb. Prices retreated further from Wednesday's peak of 15.37 cents, the highest since Nov. 28 as traders awaited weekly government data that would show if speculators had further reduced a bearish bet in the commodity.

* The front-month finished the first week of 2018 trade with a slight loss after ending 2017 down over 22 percent.

* A stronger dollar and a decline in crude oil prices weighed on prices, but the market remained underpinned by the prospect of index fund buying starting on Monday as funds rebalance after sugar's poor performance in 2017, dealers said.

* Prices were also under pressure after a short-covering rally lifted them near parity with ethanol prices, said a European analyst.

* "That's a signal to Brazil to produce more sugar, which we do not need," he said, noting that harvests in key producers in Asia and the European Union were on track with expectations. In top producer Brazil, millers can choose to divert cane to ethanol or sugar production.

* March white sugar finished down $2, or 0.50 percent, at $396.70 per tonne.

COCOA

* March London cocoa settled down 3 pounds, or 0.22 percent, at 1,364 pounds per tonne. Prices hit a three-week low of 1,322 pounds on Thursday before rebounding in late trade.

* The strong flow of cocoa to Ivory Coast ports has kept the market on the defensive, dealers said.

* March New York cocoa finished down $10, or 0.52 percent, at $1,895 per tonne, but ended the week slightly higher. (Reporting by Chris Prentice in New York and Nigel Hunt in London; Editing Jane Merriman and Chizu Nomiyama)