SOFTS-Coffee, sugar prices ease as commodities weaken

* Firmer dollar helps to halt rebound in softs

* Weak pound underpins London cocoa prices

LONDON, March 27 - Coffee and sugar futures eased on Friday as crude oil led a broad-based decline in commodity markets, the dollar firmed and profit-taking emerged after the recent run-up in prices, dealers said.

Cocoa futures on ICE were also lower although prices in London were underpinned by the weakness of sterling.

"Since the end of February we have had a good rebound in commodities, especially softs, so I am not really surprised to see this kind of movement," said Romain Lathiere, fund manager with Swiss-based Diapason Commodities Management.

Lathiere said the prospects for the markets resuming their upward trend may hinge on the performance of the dollar.

"I really could see 1.45 on the euro/dollar, maybe by the end of April. That will really help soft commodities," he added.

The euro was around $1.33 on Friday.

May raw sugar futures on ICE were off 0.18 cents at 12.57 cents at 1400 GMT while May white sugar in London fell $4.80 to $387.60 per tonne.

Lausanne-based consultancy Kingsman SA on Friday estimated there would be a global sugar deficit of 2.5 million tonnes in 2009/10.

Kingsman, in its first balance forecast for 2009/10, estimated that production would climb to 163.71 million, up from 153.43 million in 2008/09, while consumption was expected to rise to 166.21 million from 164.98 million.

Coffee prices also fell with May arabicas on ICE down 1.60 cents at $1.1575 per lb and May robustas in London off $26 at $1,546 per tonne.

Dealers said the market was keeping a close watch on the situation in Colombia, the world's third largest producer, with a decrease in supplies helping to tighten the arabica market.

Colombian coffee shortages should ease by mid-August with volumes normalizing by September due to the mid-year crop from southern and northern regions, Gabriel Silva, director of the National Federation of Coffee Growers told Reuters on Thursday.

Cocoa prices on ICE were lower with May down $18 at $2,574 a tonne but May cocoa in London rose 14 pounds to 1,916 pounds a tonne, underpinned by a weaker pound.

Sterling fell to a one-week low against a broadly firmer dollar on Friday, weighed by an unexpected downward revision to UK gross domestic product.