SOFTS-Raw sugar edges above 2-1/2 year low
* Sugar market looks to Brazil's 2013/14 crop
* Asia's Q4 cocoa grind rose 2.8 pct
(Adds details, quote, updates prices)
LONDON, Jan 22 (Reuters) - Raw sugar futures on ICE hovered near an almost two-and-a-half year low hit earlier on Tuesday, as surplus supplies kept prices under downward pressure.
Cocoa futures corrected over 2 percent lower on ICE, trimming recent gains, while coffee also eased.
Raw sugar futures nudged higher at 1517 GMT with March up 0.04 cent or 0.2 percent at 18.41 cents per lb, after touching 18.25 cents earlier in the session, the lowest level for the front month since August 2010.
Dealers and analysts said both the technical and fundamental outlooks for the market were bearish, with a break below 18.25 cents likely to trigger further losses.
"If we close below here, then definitely we're going all the way to around 18 cents," said VTB Capital analyst Andrey Kryuchenkov, adding there was a clear downtrend.
"For the past four or five sessions, volume has been very decent. That's new shorts added, so there's some bearish bets here."
As top producer Brazil's cane crush nears completion, focus has shifted to the coming crop, which is expected to surpass a bumper 2012/13 crush.
"We need to wait for the next Brazilian estimates in the spring, and nothing is going to change much until then," Kryuchenkov said.
March white sugar on Liffe fell $1.20 or 0.2 percent to $488.60 per tonne. The contract dipped to $486.20 earlier in the session, the lowest level for the front month since June 2010.
Cocoa futures on ICE fell as dealers said the market was due a correction after hitting a one-month high on Friday.
"The market went up a bit too far and has come back," said a London-based broker.
"Conditions in West Africa are improving," said the broker, noting this was favourable for the development of the mid crop.
March cocoa futures on ICE were down $58 or 2.5 percent at $2,227 per tonne.
Cocoa grindings in Asia rose 2.8 percent to 155,237 tonnes in the fourth quarter of 2012, compared with 150,972 tonnes in the same period in 2011, the Cocoa Association of Asia said on its website.
The rise was in line with expectations.
Asia's grind followed North America reporting around a 1 percent rise and the European grind falling around 6 percent.
"Overall the (fourth quarter) grindings data was neutral to positive," said a second London-based broker.
May cocoa futures on Liffe fell 25 pounds or 1.7 percent to 1,455 pounds a tonne.
Arabica coffee futures were slightly lower, consolidating below Friday's two-and-a-half month high, as dealers noted potential for further short-covering gains after data published Friday showed funds had trimmed their net short position.
"Funds are still short but they covered ... it was an opportunity for origins to fix," a London-based broker said, noting there was still a lot of coffee to come out of top producers Brazil and Vietnam.
March arabica futures traded down 1.05 cent or 0.7 percent at $1.5525 per lb.
Dealers monitored information on damage to Central American trees from the roya coffee disease.
"There has been a lot of talk about roya destroying crops in Central America - some say as much as 2 million bags might have been affected," the broker added.
March robusta coffee futures were down $2 or 0.1 percent at $1,968 a tonne with the market, digesting gains after peaking at $1,989 on Friday, the highest level for the second position since Nov. 2.
(Reporting by Sarah McFarlane; Editing by Alison Birrane)