* Sugar eases after 2 pct rally on Monday
* Market technically overbought, dealers say
By Ritvik Carvalho
LONDON, Sept 27 (Reuters) - ICE raw sugar futures fell on Tuesday, easing after a rally in the previous session saw the March contract jump 2 percent.
March raw sugar futures were down 0.05 cent, or 0.2 percent, to 23.07 cents per lb at 1300 GMT.
Dealers said the market was technically overbought so the dip was not unexpected, but the overall mood remained bullish due to an impending deficit in 2016/17.
"I think the general view is the deficit we've got coming for the next season beginning on October 1st is going to get more and more prevalent," said a trader in London.
"It's going to bite in the last quarter of this year and the first quarter of the next."
October raws were up 0.07 cent, or 0.3 percent, to 22.61 cents per lb as the contract heads towards expiry on Friday.
December white sugar futures were down $3.80, or 0.6 percent, to $595.10 per tonne.
Brazil's Sao Martinho, among the country's largest sugar producers, said on Monday its board approved plans to increase cane crush and sugar output in the 2017/18 crop. (nL8N1C25NW)
Lower than expected cane crush data from Brazil's centre-south region has been cited as one of the drivers behind New York raw sugar prices, which touched a four-year high last week.
Arabica coffee futures were lower, with the December contract down 0.75 cent, or 0.4 percent, to $1.5610 per lb.
Dealers said arabica supplies remained ample, in contrast to the robusta market which has a tighter outlook.
November robusta coffee was up $11, or 0.5 percent, at $1,986 per tonne.
Brazil's crop supply agency Conab cut its forecast for the country's 2016 coffee output after losses from drought in robusta growing regions eclipsed gains in arabica areas. (nL2N1BX0GM)
December New York cocoa was up $8, or 0.3 percent, to $2,851 per tonne.
Heavy rain that continued last week in most of Ivory Coast's main cocoa growing regions will improve the size of the upcoming main crop, farmers said on Monday, but more sun is needed to ward off disease. (nL8N1C22R6)
December London cocoa was up 9 pounds, or 0.4 percent, at 2,282 pounds per tonne. (Editing by Mark Potter)