SOFTS-Coffee prices slip as risk aversion stalls rally
* Canaplan forecasts Brazil CS cane crop below 577 mln T
* Cocoa prices remain near 2-1/2-year high
* Robusta coffee prices in Vietnam highest since May 2013
By Nigel Hunt
LONDON, March 12 (Reuters) - Coffee prices suffered a modest setback on Wednesday after the prior session's surge to a two-year high, with a general reduction in the risk appetite of investors prompting some to take profits.
Prices have almost doubled this year as dry weather in top producer Brazil reduced the prospects for the upcoming 2014/15 crop and led to forecasts that there would be a global deficit for the first time in several seasons.
May arabica coffee futures on ICE were off 1.55 cents or 0.75 percent at $2.0410 per lb by 1043 GMT. The contract peaked at $2.0890 on Tuesday, the highest level for the benchmark second position since February 2012.
Investors' risk appetite has been diminished by increased concern about China's economic slowdown and prices for non-agricultural commodities such as copper have fallen sharply.
"The story about China is one that agricultural markets have so far managed to escape but anything which nearly doubles in price in a short period of time, there will be a time for reflection sooner or later," Saxo Bank's head of commodity strategy, Ole Hansen, said. Continuación...