SOFTS-ICE sugar set to extend losing streak, coffee also lower
* Vietnam considers stockpiling coffee
* India sugar crop aided by above-normal monsoon rains
* Cocoa run-up gathers momentum as resistance level breached
(Adds quotes, updates prices)
LONDON, July 3 (Reuters) - ICE raw sugar futures were on course for a sixth consecutive daily decline on Wednesday as the cane crush in top producer Brazil looked set to be boosted by drier weather, adding to the market's already plentiful supplies.
Arabica coffee futures on ICE fell due to expectations that Brazil would approve a scheme to support local producers. Cocoa climbed as a technically driven rally gathered momentum.
October raw sugar on ICE was off 0.04 cent or 0.24 percent at 16.49 cents per lb at 1432 GMT.
"Rains are expected to stop this week in Brazil and the forecast for the rest of the month seems to be drier and better for crushing in CS (centre-south) Brazil," Nick Penney of brokers Sucden Financial said in a market note.
Dealers said the market was also weighed by strong monsoon rains in India which have boosted crop prospects in the top sugar consumer.
"Above-average monsoon rainfall bodes well for Indian agricultural production, including sugar, which should continue to weigh on values," analyst Luke Mathews of Commonwealth Bank of Australia said.
"In addition, the resumed weakening of the Brazilian real and improved local crushing conditions are likely to result in a fresh wave of Brazilian producer selling pressure," he added in a market note.
August white sugar on Liffe was up $1.40 or 0.3 percent, at $497.00 a tonne.
Arabica coffee futures on ICE were lower as dealers awaited news on whether Brazil would approve a programme known locally as Pepro, which helps create a floor for physical coffee prices during the harvest.
A decision is expected around the end of the week.
Ricardo Santos, a senior coffee trader at Equatorial Traders, said the plan, if approved, could lead to more selling by Brazilian producers and weigh on prices.
ICE September arabicas were off 1.55 cents, or 1.25 percent, at $1.2280 per lb.
Robusta coffee futures on Liffe were also lower, despite news that Vietnam, the world's top robusta producer, is considering stockpiling 200,000-300,000 tonnes of the 2013/2014 coffee crop starting in October to support prices.
"It just delays the inevitable," Santos said, noting it would just defer sales.
Santos also noted that the prospects for Vietnam's 2013/2014 harvest remained favourable.
"Everyone seems to agree it is going to be a big crop," he said.
Liffe September robusta coffee was off $7, or 0.4 percent, at $1,814 a tonne.
Cocoa futures on ICE rose, with September up $47, or 2.2 percent, at $2,225 a tonne.
Dealers said the rise was largely technically driven, with the breach of resistance at $2,210 on ICE and 1,490 pounds on Liffe enhancing the outlook on price charts.
September cocoa in London rose 21 pounds, or 1.4 percent, to 1,495 pounds a tonne.
(Reporting by Nigel Hunt; editing by Jane Baird and Jeff Coelho)