SOFTS-Coffee retreats from two-year high, sugar also lower
* March Liffe cocoa expiry sees 37,350 tonnes tendered
* Sugar back on defensive after Brazil-driven rally
By Nigel Hunt
LONDON, March 17 (Reuters) - Arabica coffee futures on ICE were sharply lower on Monday as the market extended its retreat from last week's two-year high as the focus remained on the extent of damage to Brazil's crop prospects from dry weather earlier this year.
Raw sugar futures also fell while cocoa was little changed.
Romain Lathiere, head of dealing at Diapason Commodities Management said the arabica market need to retracement to some extent after rising as much as 85 percent since the start of the year with the price outlook likely to remain uncertain until there is more clarity about the prospects for Brazil's crop.
"The retracement we saw on Friday and again today looks to me more like profit taking than anything else," he said.
"We still don't have precise figures on how the next crop will be affected by the drought we saw in Brazil," Lathiere added, noting a clearer picture may emerge in the next month.
May arabica coffee futures on ICE were down 6.5 cents or 3.3 percent at $1.9180 per lb by 1228 GMT after earlier dipping to a low of $1.8880. Continuación...