NEW YORK/LONDON, Oct 3 (Reuters) - Raw sugar and arabica coffee futures rose on Wednesday buoyed by the strength of the currency of Brazil, the top producer of both commodities, while cocoa plunged 3 percent. The currency has rallied this week on stronger polling for far-right Brazil presidential candidate Jair Bolsonaro. The first round of voting will begin on Sunday. A stronger Brazilian real makes commodity exports less attractive for holders of other currencies. SUGAR * March raw sugar settled up 0.16 cent, or 1.3 percent, at 12.23 cents per lb. after climbing to a 3-1/2-month high of 12.38 cents. * Dealers noted Bolsonaro's policies may be more supportive for the ethanol sector than those of his main rival. Cane is used for both ethanol and sugar production in Brazil. * "That is a bullish contributor to the market; a fundamental change in how they use sugar," said James Cordier, president of Option Sellers in Tampa, Florida. * Dealers said speculators had cut a large net short position in raw sugar during the last few days. * "This short position was always too large to be cleared without making waves," Commonwealth Bank of Australia analyst Tobin Gorey said. * December white sugar settled up $5.20, or 1.6 percent, at $338.70 per tonne, peaking at $341.90, a 2-1/2-month high. COFFEE * December arabica coffee settled down 1.05 cent, or 1 percent, at $1.066 per lb., earlier rising to $1.1080, a nearly two-month high for the contract. * Colombia produced 1.05 million 60-kg bags of washed arabica coffee in September, down 14.5 percent from the same month a year earlier, the National Coffee Growers' Federation said. * "The flowering season is kicking off quite well in Brazil. Fundamentally, there will still be a lot of supply for the next 12 months," Cordier added. * November robusta coffee settled down $16, or 1 percent, at $1,588 per tonne, earlier peaking at $1,617, its highest since Aug. 30. COCOA * December New York cocoa settled down $67, or 3.2 percent, at $2,019 per tonne. * December London cocoa settled down 43 pounds, or 2.8 percent, at 1,498 pounds per tonne, earlier sinking 3 percent to 1,494. * "There are buyers, but more are waiting for prices to drop even further," a New York soft commodities trader said. * Dealers continued to monitor the start of the Ivory Coast main crop. Good conditions suggest ample supplies and strong arrivals in coming months. (Reporting by Renita D. Young in New York and Nigel Hunt in Lonodon; Editing by Susan Fenton and Diane Craft)