SOFTS-ICE sugar, coffee firm, digest losses
* Sugar oversold, should rebound to 20 cents-Commerzbank
* Brazil coffee biennial cycle output narrows
(Adds details, quotes, updates prices)
LONDON, Dec 11 (Reuters) - Arabica coffee and raw sugar futures on ICE consolidated above two-and-a-half year lows on Tuesday, digesting the previous sessions losses, as ample supplies from top producer Brazil capped price upside in both markets.
Cocoa futures edged lower as dealers monitored the flow of cocoa in West Africa as the 2012/13 main crop harvest progresses.
March raw sugar futures on ICE were up 0.08 cent or 0.4 percent to 18.84 cents a lb at 1130 GMT, as analysts revised up their global surplus expectations, after the latest harvest update from Brazil exceeded expectations.
"It had to be expected that with more mills working the output in recent weeks is much higher than last year," said Commerzbank analyst Michaela Kuhl.
"There has already been expectation for a high surplus in the global market for which especially Brazil is responsible for."
Brazil's center-south cane, sugar and ethanol production surged in the second half of November due to dry weather that could result in a slightly larger-than-expected cane crush this year, industry association Unica said on Monday.
Commerzbank's Kuhl said prices may have now fallen too far and need to correct higher.
"We expect prices to come up a little bit at least over the next year to establish a base above 20 cents," Kuhl added.
March white sugar on Liffe edged up $1.40 to $507.40 per tonne.
Iraq has issued a tender to buy at least 50,000 tonnes of white sugar from Brazil, Europe, Thailand and the United Arab Emirates, a statement by Iraqi trade ministry said on Tuesday.
Dealers and analysts noted the expected large 2013 off-year coffee crop in Brazil, where the gap between on and off year harvests in the country's biennial crop cycle is narrowing, should keep the market well supplied.
"There is this big Brazilian harvest on the market now and the International Coffee Organization said supply in the current season will be much higher than in the last season but that's no new information," said Commerzbank's Kuhl.
March arabica coffee futures were up 0.75 cent or 0.5 percent at $1.4775 per lb, after dipping to $1.4635 last week, the lowest level since June 2010.
"For the time being we think the market will trade the range of $1.40 support to $1.60 resistance," said a London-based trader.
March robusta coffee futures were down $4 or 0.2 percent at $1,876 a tonne.
World coffee output in the current 2012/2013 crop will rise 8.4 percent from the previous season to 146 million bags, with arabica production jumping 10.6 percent, the International Coffee Organization said.
March cocoa on Liffe eased 8 pounds or 0.5 percent to 1,512 pounds per tonne.
December's premium over March <LCC-1=R> held steady at 72 pounds in the lead up to the contract expiry on Wednesday.
Dealers eyed slower-than-expected arrivals in top producer Ivory Coast.
"We're expecting a good crop this year," said a London-based dealer, adding that the slower arrivals were most likely connected to the implementation of the Ivorian cocoa sector reforms.
March cocoa on ICE were down $9 or 0.4 percent at $2,370 a tonne.
(Reporting by Sarah McFarlane; Editing by Alison Birrane)