* Prospects for India sugar exports recede
* White sugar premium soars to contract high
* NY cocoa open interest down 2,300 lots after 7 pct drop (Recasts, updates trading, adds comment, byline, NEW YORK dateline)
By Marcy Nicholson and David Brough
NEW YORK/LONDON, Jan 7 (Reuters) - Sugar futures on ICE bucked a weak trend in commodities to surge more than 3 percent on Thursday, buoyed by concerns about tight nearby supplies for white sugar, which jumped to a 14-month high.
Cocoa prices dove to extend this week’s steep losses to multi-month lows, while coffee futures also dropped every day of this week. They were part of a commodity slump following a rout in Chinese shares that dragged down world equity markets on fears of a global slowdown.
“Cold winds from the Far East continue to blow over the world’s economy,” a senior soft commodities broker said.
Still, white sugar rallied for a second day after a surge in domestic Indian prices lowered expectations for the country’s exports. Adding fuel to those gains were reports of harvest delays in Central America due to rainfall, as well as disappointing yields in Thailand, traders said.
Despite a weaker Brazilian real and oil prices, the whites rally boosted raw sugar futures.
March white sugar settled up $9.60, or 2.3 percent, at $428.80 per tonne, after jumping to the highest since November 2014 at $432.70 and its premium to May LSUH6-K6 surged to a contract high of $12.80. The March whites-over-raws premium briefly jumped above $103, a stark comparison to $86 a week ago.
“Domestic Indian prices are very strong so the export that everybody thought would be happening out of India has never materialized and the EU’s going to have the smallest crop it’s had in several years,” one U.S. trader said.
March raw sugar settled up 0.33 cent, or 2.3 percent, at 14.75 cents per lb after falling 5.4 percent in the past three sessions, when total open interest fell more than 18,000 lots.
“A major theme recently, apart from the shocking macro, has been the anticipated index fund selling and rebalancing,” said Tom Kujawa, co-head of softs at Sucden Financial Sugar.
March New York cocoa settled down $18, or 0.6 percent, at $2,963 per tonne, after touching the lowest since May 2015 at $2,898 on speculative selling. Despite falling 7 percent over the first three days of this week, open interest only dropped around 2,300 lots, ICE data showed.
London March cocoa settled down 8 pounds, or 0.4 percent, at 2,107 pounds per tonne, after touching 2,060 pounds, the lowest since August.
March arabica settled down 1.5 cent, or 1.3 percent, at $1.1845 per lb, while March robusta coffee settled down $13, or 0.9 percent, at $1,479 per tonne. (Editing by Dale Hudson and Bernadette Baum)