UPDATE 1-ICCO sees global cocoa surplus of 105,000 tonnes in 2017/18

* Production in Ivory Coast seen falling slightly

* Asia, Oceania to show the strongest growth in grindings (Adds details, quotes)

LONDON, Feb 28 (Reuters) - The International Cocoa Organization (ICCO) on Wednesday forecast there would be a global cocoa surplus of 105,000 tonnes in the 2017/18 season (October/September).

The inter-governmental body's first forecast reflects a decline of slightly more than two percent in global production from the prior season and a rise of two percent in world grindings.

The ICCO also downwardly revised its estimated global surplus for 2016/17 to 300,000 tonnes, from a previous projection of 335,000 tonnes.

The projected surplus for 2017/18 was broadly in line with the median forecast in a Reuters poll issued earlier this month of 100,000 tonnes.

Production in top grower Ivory Coast was forecast to fall slightly in 2017/18 to 2.00 million tonnes from 2.02 million in the prior season.

"With the mild harmattan season, most market participants expected a good harvest for the current season, although it is anticipated to be lower than the previous season's output," the ICCO said in a quarterly update.

Global grindings were forecast to rise to 4.49 million tonnes in 2017/18, from 4.40 million in the prior season "as cocoa processors take advantage of lower international prices resulting in high processing margins."

The largest increase of almost three percent is expected in the Asia and Oceania regions.

Processing activities were anticipated to increase by more than two percent in Europe but remain virtually flat in the Americas, the ICCO said.

(Reporting by Nigel Hunt; Editing by Susan Fenton)