SOFTS-Arabica coffee recoups nearly half of previous session's losses

(Recasts; updates prices and market activity; adds comments, NEW YORK to dateline)

NEW YORK/LONDON, June 6 (Reuters) - Arabica coffee rebounded on Thursday in a technical correction to recoup nearly half of its losses from the previous session, when the contract plunged more than 6% in its worst daily performance in four years. Cocoa and sugar rose.


* July arabica coffee settled up 2.95 cent, or 3%, at $1.0205 per lb, after plunging 6.2% on Wednesday.

* Prices plunged 6.2% on Wednesday, following several weeks of price gains that culminated in the contract hitting a four-month high of $1.0615 cents on Tuesday.

* That rally had been driven by speculative short-covering against the backdrop of concerns about cold weather in top-grower Brazil as well as a recovery in the country's currency.

* A strong real boosts coffee by discouraging producer selling of the dollar-priced commodity.

* "Everyone's a bit shell-shocked from such an aggressive move. Maybe we will float around for a bit, but some are suggesting funds have covered their shorts and could get back to selling the market," said a dealer.

* The pace of coffee exports from Brazil remains strong and concerns about adverse weather impacting crop quality have diminished.

* July robusta coffee settled up $18, or 1.3%, at $1,431 per tonne after closing down 4.8% on Wednesday.

* Domestic coffee prices in Vietnam fell sharply on Thursday from Wednesday, halting the strong recovery from a six-year low seen in early May.


* July raw sugar was up 0.23 cents, or 1.9%, to 12.45 cents per lb, its highest settle in six weeks, closing above its 50-day moving average for the second time in three sessions.

* Prices were buoyed by some short-covering, dealers said.

* The contract was approaching resistance around the 12.50-cent-level, beyond which commercial selling could accelerate, dealers said.

* Dealers were watching for the arrival of the monsoon rains in India, a top grower and consumer of sugar. The weather office anticipates that they will arrive around June 8.

* August white sugar settled up $7.20, or 2.2%, at $339.30 per tonne.

* More European sugar factories will close as companies are forced to cut costs after a slump in prices since the end of EU production quotas wiped out profits, French sugar group Cristal Union's chief executive said.


* July New York cocoa settled up $26, or 1.1%, at $2,427 per tonne.

* July London cocoa settled up 2 pounds, or 0.1%, at 1,782 pounds per tonne.

* Ghana's graded and sealed cocoa arrivals reached 743,935 tonnes between Oct. 1 and May 16, compared to 738,735 tonnes the previous season. (Reporting by Maytaal Angel in London and Ayenat Mersie in New York; Editing by Mark Potter and Sonya Hepinstall)