SOFTS-Raw sugar rises from 3-1/2-month low, arabica coffee slides

NEW YORK, Dec 4 (Reuters) -

Raw sugar futures on ICE exchange rose on Monday, recovering after earlier hitting 3-1/2-month lows under pressure from surging supplies in Brazil, while arabica coffee fell by nearly 3%.

SUGAR

* March raw sugar settled 2.9% at 25.81 cents per lb, after setting a 3-1/2-month low of 24.58 cents earlier in the session. The contract posted a weekly loss of 7% last week.

* Dealers said trading volumes have been very high in the last three sessions, above 100,000 lots, in a volatile environment.

* They added that the weather in Brazil is expected to remain favourable for production in the near term, the logistics situation seems to have improved, and technical signals including nearby spreads have turned bearish.

* Brazil exported 3.68 million metric tons of sugar in November, 10% up year-on-year.

* There was also talk of commercials taking the opportunity to buy as funds liquidated part of their long position.

* March white sugar rose 1.8% at $709.50 a ton.

COFFEE

* March arabica coffee fell 2.7% at $1.794 per lb, after hitting a six-month peak last week.

* Dealers said much-needed rains are expected to pick up pace in Brazil's coffee areas in the second half of December, improving prospects for what should be a bumper crop next season.

* Honduras' coffee exports in November soared 62.7% from last year.

* Brazil's green coffee exports in November rose 8% to 3.91 million bags.

* January robusta coffee fell 1% to $2,546 a ton.

* The climate in top robusta producer Vietnam has been favourable for harvesting thanks to cooler temperatures and no rain, meaning the coffee is starting to flow.

COCOA

* March London cocoa fell 0.5% to 3,479 pounds a ton after setting a record high last week.

* Main crop cocoa arrivals at ports in top grower Ivory Coast have fallen 35% in the season to date, exporters estimated on Monday.

* Dealers said, however, that a strong British pound and long liquidation as investors baulk at current price levels are capping gains in cocoa prices for now.

* March New York cocoa fell 0.7% to $4,171 a ton. (Reporting by Maytaal Angel and Marcelo Teixeira; Editing by Varun H K, Barbara Lewis and Shailesh Kuber)