* Arabica market under pressure from Brazil producer selling
* Brazil dry weather could see sugar output revised higher
(Adds quotes, updates prices)
LONDON, Oct 31 (Reuters) - Arabica coffee futures slipped on Wednesday, pressured by selling from top grower Brazil, while dry weather was expected to aid the country's sugar harvest, weighing on sugar prices.
Cocoa was near unchanged in both London and New York.
December arabica coffee futures were down 2.5 cents or 1.6 percent at $1.5470 per lb at 1538 GMT. The second-month hit $1.5920, the lowest level since Sept. 7.
``The outlook for arabicas is very bearish,'' said a London-based broker.
``There's still the remainder of Brazil's crop to sell, that's going to weigh on the market. I think arabica could come down to $1.40.''
Strong production elsewhere added to bearish sentiment.
``We expect a 2012/13 arabica surplus of around 6.5 million bags,'' said Cole Martin, commodities analyst at Business Monitor International.
``One of the big surprises in coffee is Central American production,'' added Martin, noting in particular the large crop in Honduras.
The country's coffee exports during the 2011/2012 coffee season, which ended Sept. 30, were up 41.7 percent at 5.48 million 60-kg bags compared with 3.87 million bags during the 2010/11 season, according to its coffee institute.
Martin said Business Monitor International anticipates a second consecutive supply surplus of arabicas in 2013/14, although smaller than the 2012/13 surplus.
January robusta coffee futures were down $12 or 0.6 percent at $1,971 a tonne, after touching $1,966 earlier in the session, the lowest level for the second month since July 15, due to pressure from top producer Vietnam's large crop.
``Most people have a flat supply and demand picture for robusta,'' the London broker said.
March sugar futures eased 0.17 cents or 0.9 percent to 19.39 cents a lb, remaining near Monday's five-week low of 19.27 cents, as the tail end of Brazil's harvest was expected to benefit from dry weather.
``Physical values continue weak and weather in centre south Brazil drier than expected, leading some to believe that output will be greater than expected in the latter stages of the crush,'' said Nick Penney of brokerage Sucden Financial.
Dealers said that, on a technical basis, the market was looking oversold.
``The decline in trading volumes suggests that the recent downtrend is running out of steam,'' said Business Monitor International's Martin, noting technical support at around 19 cents per lb, which he said is also around the cost of production for Bra z ilian producers.
December white sugar on Liffe was down $3.70 or 0.7 percent at $541.00 per tonne.
ICE December cocoa was down $11 at $2,379 per tonne, steadying after a volatile previous session, with dealers noting potential for speculator activity to be driven by month-end book squaring.
``I think a lot of speculators got dragged into the El Nino story and the Ivory Coast reform story and they're protecting a position and waiting for a catalyst to send the market higher,'' said a London-based broker.
``Demand is at best ok, crops are ok, there's no reason for speculators to be long.''
In the latest exchange data speculators increased net long positions in both London and New York.
Benchmark Liffe March cocoa futures were down 2 pounds at 1,539 pounds per tonne.
``I don't think there's a strong story so the market will go sideways, the range is 1,450 - 1,650 pounds. Below 1,500 you'll get good industry offtake,'' added the broker.
(Reporting by Sarah McFarlane; Editing by Anthony Barker)