SOFTS-Raw sugar surges on strong charts, cocoa rebounds
* Sugar up 3 percent as commodity markets rebound
* Funds have scaled back huge net longs in cocoa futures (Rewrites throughout, updates prices; adds comment, second byline, NEW YORK dateline)
By Marcy Nicholson and Nigel Hunt
NEW YORK/LONDON, Jan 13 (Reuters) - Sugar futures on ICE surged 3 percent on Wednesday, on a bullish combination of chart-based buying, continued Asian demand and as some farmers in India began to switch to crops that require less water due to a drought.
Cocoa futures also rose, after falling to multi-month lows on Tuesday, while coffee nudged higher.
The soft commodities recovered some ground and followed larger markets higher as recent declines linked to concerns about an economic slowdown in China eased after data showed the country's exports fell less than expected.
The 19-market Thomson Reuters CoreCommodity Index, bounced up from the prior session's 13-1/2-year low.
March raw sugar futures settled up 0.42 cent, or 3 percent, at 14.47 cents per lb, the spot contract's biggest rally in five weeks, in heavy volume.
"Yesterday's hold of 13.93 (cents) was key and we were very close to penetrating the 100-day moving average at 13.89 and the 200-day moving average at 13.75," one U.S. trader said, referring to the double bottom with a two-month low. Continuación...