Commodity sell-off deflates sugar, coffee and cocoa

* Egypt's SIIC cancels tender for 200,000 tonnes raw sugar

* Arabicas sink, sugar stumbles and cocoa weakens

* Ivorian cocoa exports expected to pick up (Adds details and recasts, changes dateline)

By Rene Pastor and Sarah McFarlane

NEW YORK/LONDON, May 4 (Reuters) - Arabica coffee futures tumbled from 34-year highs on Wednesday as the softs complex reeled in a commodity-wide sell-off due to poor U.S. data and worries global economic growth could stall this year.

Sugar lost ground because of ample supplies, while cocoa slid due to easing tensions in top grower Ivory Coast and prospects for a pick-up in cocoa exports later this week.

The Reuters-Jefferies CRB index, a global benchmark for commodities, fell almost 1 percent for a second day in a row, hit by a sell-off in oil and most raw materials.

The July arabica coffee contract on ICE Futures U.S. dropped 11.45 cents or 3.7 percent to trade at $2.947 per lb as of 12:30 p.m. EDT (1630 GMT), having hit a session low of $2.912.

London's July robusta coffee dipped $35 to trade at $2,576 per tonne, after hitting a new contract peak of $2,624 during Wednesday's session.

"Everyone's running for the door at the same time," said James Cordier of brokers optionsellers.com in Florida.

He said arabicas may have peaked when they came within a whisker of $3.09 as the commodity complex showed signs of having burst its bubble.

Fundamentally, the market has surged on speculative buying and concern about tight supplies of high-quality beans.

Sugar futures fell, weighed by expectations of ample supplies from Brazil and Thailand, the possibility that India could authorize more unrestricted exports, and a canceledEgyptian tender.

Egypt's state-owned Sugar and Integrated Industries Co (SIIC) has canceled a tender to buy 200,000 tonnes of raw sugar and is expected to hold another tender soon, European trade sources said.

The July raw sugar contract declined 0.54 cent to 21.51 cents per lb, while London's August white sugar futures fell $16.50 to trade at $593 per tonne.

Some traders said ICE front-month July raw sugar futures could soon test psychological support at 20 cents.

"The prospects for the bulls are still seemingly worrying as it seems their best chance of a rebound will be either weather in Brazil taking a turn for the worse or some unforeseen political event," said Thomas Kujawa of Sucden Financial.

Alex Oliveira, senior sugar analyst at brokers Newedge USA, said: "Unless there is bullish news coming out of Brazil, it's hard to see it (raw sugar) going back to 25 cents."

Cocoa futures also declined, with traders looking at the restart of exports from Ivory Coast.

"London is undervalued compared to New York ... it means that your West African beans, which are better quality than Indonesian beans, are cheaper," said Eric Sivry, head of the agri options brokerage at Marex Financial.

New York's July cocoa contract dropped $60 to end at $3,211 per tonne. London's July cocoa futures lost 39 pounds to finish at 1,945 pounds per tonne.

(Source: http://www.forexyard.com/en/news/SOFTS-Commodity-sell-off-deflates-sugar-coffee-and-cocoa-2011-05-04T172825Z)