SOFTS-Coffee nears 2-year high on worries over Brazil's crop

* Arabicas nudge up towards 2-year high

* Weak demand for sugar weighs on nearby contracts

(Adds quote, updates prices)

LONDON, April 8 (Reuters) - Arabica coffee continued its searing rally on Tuesday, building on recent gains, rising around 14 percent in the past three sessions on worries over the Brazilian crop.

Cocoa prices were firm ahead of the latest quarterly grind data, while sugar was higher.

Arabica coffee prices hovered near a two-year high of $2.0755 per lb hit on March 11, underpinned by concern that rainfall at the end of top grower Brazil's wet season came too little too late after drought in January and February.

May arabica coffee futures on ICE traded up 8 cents or 4.1 percent at $2.0135 cents per lb at 1429 GMT.

"It seems like despite rainfall being received in Brazil's coffee belt, it may be too late to benefit the parched coffee crop," Phillip Futures analyst Vanessa Tan said in a note.

Dealers said that there was no fresh news to prompt the extended rally but speculator buying based on market technicals was pushing prices higher.

"It's just feeding on itself. It's been technical buying for the last 20 cents," a London-based broker said, referring to the move higher.

July robusta coffee futures on Liffe traded up $55, or 2.6 percent, at $2,167 per tonne.


Cocoa prices on Liffe were firm, remaining stuck within a tight range of around 100 pounds that has been traded for the past 10 weeks.

Dealers said the market lacked clear technical or fundamental direction although the upcoming quarterly grind data could help provide this.

Traders and analysts have pegged Europe's first quarter grind, due Thursday, up around 3 percent compared with the same period a year ago.

"What we need is something unexpected," a UK-based broker said.

July cocoa on Liffe edged up 2 pounds at 1,877 pounds a tonne.

"It's stuck ... the balance of power between buyers and sellers is pretty evenly matched," said the broker, adding that industry was buying on any dips, while speculators were selling.

May cocoa on ICE was up $32, or 1.1 percent, at $2,992 a tonne, supported by the weaker dollar.

Sugar futures were higher but discounts on the front month contracts for both the raw and white sugar markets widened, indicating there may be limited appetite to take delivery.

May raw sugar futures on ICE rose 0.22 cent to 17.15 cents a lb, while the discount on May to July widened to 58 points, from 44 points on Friday.

May white sugar futures on Liffe were up $3.20 a tonne at $459.00. May's discount to August widened to $15.40 a tonne from Friday's close of $12.40.

"It does look as though further weakness may be seen, as no obvious buyers appear to want to step up to the plate and take delivery, especially whilst end destination demand remains quite weak," a London-based broker said.

(Editing by David Evans)