SOFTS-ICE coffee slumps to 4-year low, excess supplies weigh
* Czarnikow cuts 2013/14 sugar surplus forecast
* Coffee market focus on wet season in Brazil
* Cocoa 2012/13 deficit seen at 150,000-180,000 T
(Adds details, quotes, updates prices)
LONDON, Sept 5 (Reuters) - Arabica coffee futures on ICE sank to a four-year low on Thursday, extending a prolonged slide fuelled by excess supplies after a large harvest in top grower Brazil earlier this year and a rebound in production in Colombia.
Dealers said there remained scope for prices to fall even further unless the currently favourable outlook for next year's crop in Brazil were to change in coming weeks.
"There is no suggestion that it (the price) can't go lower," said Andrea Thompson, an analyst with CoffeeNetwork, part of INTL FCStone.
"The wet season is now very much the focus for Brazil," she added, noting that if expected rains did not materialise over the next few weeks, it would probably support prices.
December arabica coffee on ICE stood 0.7 percent lower at $1.16 per lb at 1437 GMT after touching $1.1525, the weakest level for the second month since July 2009.
The large Brazil crop this year has coincided with a production rebound in Colombia, where output has slipped for a few years due to a tree renovation programme.
November robusta coffee futures on Liffe fell $11 or 0.6 percent to $1,767 a tonne.
SUGAR SURPLUS SHRINKS
Raw sugar futures on ICE were higher on Thursday, extending a recovery from a three-year low in July, with stronger-than-expected physical demand reinforcing expectations that the global surplus is likely to be a much smaller in 2013/14.
Commodities house Czarnikow on Thursday cut its forecast for the global sugar surplus in 2013/14 by around half to 2.0 million tonnes, far below the prior season's 9.5 million.
"The surplus in sugar is nothing like as large as it is assumed to be ... Demand for sugar has been a lot stronger than we had been expecting," the commodities house said, adding sugar had become more affordable following a decline in prices.
October raw sugar on ICE was up 0.13 cent or 0.8 percent at 16.51 cents a lb, pulling further away from a three-year low of 15.93 cents touched on July 16.
Dealers said the potential covering of a large net short position by speculators could add fuel to the recovery.
"The market has been heavily short for quite a long period," Andrey Kryuchenkov of VTB Capital said.
"Short-covering is never enough to have sustained gains, it would help sugar to recover ... for sustained gains you should see longs entering at above 18 cents."
Kryuchenkov said the downward revision to the 2013/14 surplus was the major reason for participants to consider adding fresh long positions.
October white sugar on Liffe was up $2.90 or 0.6 percent at $483.00 a tonne.
December cocoa in London was up 43 pounds or 2.6 percent at 1,697 pounds a tonne while December cocoa on ICE climbed $63 or 2.5 percent to $2,559 a tonne.
Dealers noted that an improving demand outlook may widen global deficit forecasts for 2012/13.
"There's a lot of talk of higher deficit numbers of 150,000 to 180,000 tonnes," a London-based broker said.
This would be significantly wider than the International Cocoa Organization's deficit forecast of 52,000 tonnes.
(Reporting by Sarah McFarlane and Nigel Hunt; editing by Jane Baird)