SOFTS-Liffe robustas stall after setting 1-month high
* Robusta coffee underpinned by slow producer selling
* Sugar traders keep close watch of Brazil port protests
* Cocoa market awaits next week's grinding data
LONDON, July 11 (Reuters) - Liffe robusta coffee futures turned slightly lower on Thursday after climbing for two weeks to reach a one-month peak earlier in the day, while ICE arabica coffee advanced in part due to weakness in the dollar.
Raw sugar futures on ICE rose early as the dollar softened before turning lower as the focus returned to excess supplies and good harvest weather in top grower Brazil.
Cocoa futures on ICE held onto early gains.
September robusta coffee was off $5 or 0.3 percent at $1,867 a tonne at 1440 GMT after earlier peaking at $1,888, the highest level for the second month since June 6.
Dealers said the robusta market had been driven up by a combination of speculative covering of a large net short position and a lack of selling by producers, who have been holding out for higher prices.
Prices still remain around $100 above levels a couple of weeks ago.
"Having had the heavy losses, there was always going to be a technical correction to the upside, and that was supported by the differentials and the activity at origin," analyst Andrea Thompson of INTL FCStone said.
Vietnamese robustas this week traded at their highest premiums to the futures market in two years.
Arabica coffee futures on ICE were higher, boosted by a softer dollar, although the upside continued to be capped by ample supplies.
ICE September arabicas were up 2.40 cents, or 2.0 percent, at $1.2405 per lb.
ICE October raw sugar off 0.13 cents or 0.8 percent at 16.12 cents a lb.
Dealers said the softer dollar fuelled an early run-up to the day's high of 16.33 cents but that gains proved short-lived as the market struggled to absorb excess supplies.
"Overall we still feel values will test 16 cents, and with funds not as short as before, there might be renewed short-selling on a break of this level," Nick Penney of Sucden Financial said in a market note.
Dealers continued to keep a close watch on labour unrest in the Brazilian port of Santos.
"Logistical problems as a result of strike action in Brazil are more likely to affect the structure of the market rather than the flat price. The cane carries on growing and available for crushing if the weather allows millers to catch up," Penney of Sucden said.
August white sugar on Liffe fell $4.30 or 0.9 percent to $480.00 per tonne.
Cocoa futures on ICE rose, with September up $45, or 2.1 percent, at $2,223 a tonne after climbing to $2,250 on Friday, the highest level for the second month since mid-June.
Dealers said the market was beginning to focus on next week's second-quarter grind data. The European grind, to be published on Monday, is expected to show a rise of 5 to 10 percent from depressed year-ago levels.
September cocoa in London rose 18 pounds or 1.2 percent to 1,534 pounds ($2,300) a tonne. ($1 = 0.6691 British pounds)
(Additional reporting by David Brough; editing by David Evans and Jane Baird)