SOFTS-Sugar, coffee soar as limp dollar boosts mood

* Reeling dollar sparks sugar and coffee

* Cocoa trade eyes Ivory Coast harvest

(Recasts with markets closing levels, adds U.S. comment, and NEW YORK dateline/byline)

NEW YORK/LONDON, Nov 2 - Sugar and coffee futures rallied on Monday on investment fund buying tied partly to a sagging dollar while cocoa stumbled due to technical pressure and a weak sterling, analysts said.

Sugar futures moved up, mainly because of investment fund buying and slack producer sales. Brokers said stronger crude values also provided support for the sweetener.

New York's March raw sugar contract surged 0.63 cent to end at 23.44 cents per lb. London's December white sugar contract went up $10 to end at $590.50 per tonne.

"I think it's more short-covering and a lack of selling by producers," Alex Oliveira, senior sugar analyst for Newedge USA in New York, while pointing to the fact many market players in top producer and exporter Brazil are out because of a holiday.

Some believe there are also signs of an uptick in consumer interest which gave sugar a boost.

"We are beginning to see some more physical activity in the market and I think that is partly why prices are up today," said Barclays Capital analyst Nick Snowdon.

Market players are now waiting for the release later in the week of a crop update by Brazil's Cane Industry Association.

"It appears that the market has had a good correction to the sell-off, but at these higher numbers may require some news of sizable offtake, or further production problems, to maintain these levels," brokers Sucden said in a report.

Oliveira and other analysts said rains in Brazil are still a source of worry for many in the trade, mainly because of its impact on yields.

Demand is being closely monitored by the trade.

Analysts expect India to remain a steady buyer going into the first few months of 2010, with other countries like Bangladesh and Indonesia seen booking orders as well.

COFFEE CLIMBS, COCOA WEAKER

Coffee futures soared as well on the weaker dollar as fund buying powered the market in a late buying spree.

"The dollar (is) sinking, equities higher (and that) provoked more fund buying (in) coffee." said Rodrigo Costa, vice-president Institutional Sales for Newedge.

Dealers said delays in Vietnam's harvesting of its coffee crop were mildly supportive but a holiday in top grower Brazil kept some origins on the sidelines.

Typhoon Mirinae's strong winds and heavy rains hit Vietnam's coffee region, disrupting early harvesting in the world's No. 2 coffee producer.

London's November robusta coffee contract rose $45 to close at $1,431 per tonne. New York's December arabica coffee contract shot up 6.85 cents or by 5.05 percent to end at $1.4235 per lb.

Cocoa futures slithered to lower ground, with the trade keeping tabs on bean arrivals in leading producer Ivory Coast.

"We would expect a bit of consolidation until we see data out of the Ivory Coast offering a more price positive story," Snowdon said.

London's March cocoa contract fell 20 pounds to end at 2,148 pounds per tonne. New York's December cocoa contract lost $47 to finish at $3,250 per tonne.