SOFTS-Liffe robustas sets one-month high, cocoa also up
* Speculative long positions on cocoa remain large
* Coffee harvest in Brazil gathering pace
* Raw sugar market breaks losing steak
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LONDON, July 9 (Reuters) - Robusta coffee futures on Liffe rose to a one-month high on Tuesday, boosted by strong premiums in producing countries as farmers held onto their beans with the advance given added fuel as speculators covered a large net short position.
Cocoa futures on ICE were higher, boosted by concerns that dry weather in June in West Africa may have curtailed prospects for the main crop later this year, while raw sugar also edged up.
Liffe September robusta coffee was up $53, or 2.9 percent, at $1,875 a tonne at 1400 GMT after climbing to $1,882, the highest level for the second month since June 7.
Dealers said the market had fallen to levels where many producers in Vietnam and Indonesia have been unwilling to sell and may need to climb further.
"We know the Vietnamese want to get 40,000 dong per kilo and if they can get that they will probably start to release some," one London dealer said.
"At the moment they are not getting that. The market needs to rally a bit," the dealer added.
On domestic markets, robusta rose to 38,400-39,100 dong ($1.80-$1.84) per kg in Daklak, Vietnam's largest coffee growing province, from 37,400-38,100 dong a week ago.
Vietnamese coffee premiums to global prices rose this week to the highest in nearly two years.
Dealers said speculators had also been covering a large net short position and some industry buying was noted.
Arabica coffee futures on ICE also rose but failed to keep pace with robustas as the harvesting of a large crop in top producer Brazil gathered pace.
ICE September arabicas were up 0.20 cent, or 0.2 percent, at $1.2365 per lb.
Cocoa futures on ICE also rose with September up $12 or 0.55 percent at $2,186 a tonne. The contract climbed to $2,250 on Friday, the highest level for the second month since mid-June.
"Weather issues are coming back to the fore. Recent pod counting results indicate some dry weather risks for the new season main crop, and July-August rainfall patterns will need to be watched closely," Macquarie analyst Kona Haque said.
Haque noted in a market update that speculators were holding large net long positions in cocoa on both ICE and Liffe.
"Although speculators are still holding onto a worryingly large net length, we could find ready buyers amongst grinders, should they decide to sell," she added.
September cocoa on Liffe rose 14 pounds or 0.9 percent to 1,522 pounds a tonne.
Raw sugar futures on ICE were also higher, with October up 0.08 cent or 0.5 percent at 16.41 cents a lb.
Dealers said the market had broken a losing streak on Monday, finishing higher following seven consecutive lower closes. Abundant supplies continued to weigh on sentiment.
"Traded volumes were extremely thin, signalling a lack of conviction in the move ... Most market news remains bearish," Commonwealth Bank of Australia analyst Luke Mathews said.
August white sugar on Liffe was up $1.40 or 0.3 percent, at $497.40 a tonne.
(Additional reporting by David Brough; editing by Jane Baird and Keiron Henderson)