SOFTS-Cocoa vaults to 1-yr peaks on strong charts, arabica falls
* Cocoa 2012/13 deficit seen at 150,000-180,000 T
* Coffee market focus on wet season in Brazil
* Czarnikow cuts 2013/14 sugar surplus forecast
(New throughout, updates prices; adds trade comment, byline, NEW YORK to dateline)
NEW YORK/LONDON, Sept 5 (Reuters) - Cocoa futures soared 3 percent in heavy volume to one-year highs on Thursday, after the previous session's outside reversal higher spurred follow-through buying.
Arabica coffee on ICE Futures U.S. dropped to a four-year low, extending a prolonged slide fueled by excess supplies after a large harvest in top grower Brazil and a rebound in production in Colombia.
Liffe December cocoa in London settled up 50 pounds, or 3 percent, at 1,704 pounds a tonne in its biggest two-day surge since August 2012 at 5.6 percent. December cocoa on ICE jumped $71, or 2.8 percent, to close at $2,567 a tonne. It has climbed 6.2 percent since Tuesday's close, also its biggest two-day jump since August 2012.
Both markets made outside reversals higher on Wednesday, when the session range fell below the previous day's low and then closed above its high. This is viewed as technically bullish and attracted chart-based buying, dealers said.
Also lifting the market was an improving demand outlook that may widen global deficit forecasts for 2012/13, they said.
"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.
Arabica coffee futures on ICE eased to the lowest since July 2009 in thin dealings, with dealers saying prices could fall further unless the currently favorable 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 materialize over the next few weeks, it would probably support prices.
December arabica coffee on ICE fell 1.2 cents, or 1 percent, to $1.1565 per lb by 12:21 p.m. EDT (1621 GMT) after touching $1.1525, the weakest level for the second month since July 2009.
"I think roasters have already bought what they can. It's too late if they filled up their books at $1.20, you can't keep buying," one U.S. dealer said.
November robusta coffee futures on Liffe fell $13, or 0.7 percent, to $1,765 a tonne.
SUGAR SURPLUS SHRINKS
Raw sugar futures on ICE were higher in light and range-bound dealings, extending a recovery from a three-year low in July, with stronger-than-expected physical demand reinforcing expectations that the global surplus was 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.
"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 0.12 cent, or 0.7 percent, at 16.50 cents a lb, pulling further away from a three-year low of 15.93 cents touched on July 16.
Andrey Kryuchenkov of VTB Capital said the downward revision to the 2013/14 surplus was the major reason for participants to consider adding new long positions.
October white sugar on Liffe was up $3.70, or 0.8 percent, at $483.80 a tonne.
(Additional reporting by Nigel Hunt in London; Editing by Jane Baird and Maureen Bavdek)