(Recasts, updates prices; adds comment, adds NEW YORK dateline)
NEW YORK/LONDON, Oct 12 (Reuters) - New York cocoa futures on ICE dipped after they rose to a six-month high on Thursday, capped by producer selling.
Arabica coffee futures were lower as advantageous rains in top-grower Brazil yielded better-than-expected crops after a dry period.
* December New York cocoa settled down $7, or 0.3 percent, at $2,090 per tonne, after climbing to $2,121, the highest for the front month since April 5.
* Producer selling capped the increase in prices, a U.S. trader said.
* Dealers said fund short-covering had helped fuel the recent rise in prices with the technical outlook appearing constructive after the recent strong advance.
* Improved demand had also helped to boost prices earlier in the session.
* Dealers are now awaiting third-quarter cocoa grind figures from North America, due next week.
* Europe’s third-quarter cocoa grind rose 3 percent from the same period last year to a six-year high of 353,544 tonnes, the Brussels-based European Cocoa Association said.
* December London cocoa settled down 3 pounds, or 0.2 percent, at 1,580 pounds per tonne, after reaching a two-month high of 1,602.
* December arabica coffee settled down 0.45 cent, or 0.4 percent, at $1.2635 per lb.
* Advantageous rains in top grower Brazil after a dry period pressured prices, said Robert Bresnahan, president of Trilateral in River Forest, Illinois.
* “It’s been dry and the fact that they have gotten some rain has alleviated some of the fear,” he said.
* However, below-normal rainfall is expected across most of the coffee belt, though wetter conditions are expected in Parana, according to MDA Information Systems in Gaithersburg, Maryland.
* November robusta coffee settled up $22, or 1.1 percent, at $1,997 per tonne.
* The market was underpinned by short-term supply tightness ahead of the Vietnamese harvest, which should get underway next month, dealers said.
* March raw sugar settled down 0.02 cent, or 0.1 percent, at 14.28 cents per lb.
* Producer selling helped cap the run-up in prices following three consecutive higher closes this week and the market remained range-bound, dealers said.
* “We know of course it will not continue this sideways range-bound session indefinitely but looking for the reason to instigate a break up or down continues to be unobvious,” said Tom Kujawa, co-head of the softs department at Sucden Financial.
* December white sugar settled down $0.9, or 0.2 percent, at $375.60 per tonne. (Reporting by Renita D. Young in New York and Nigel Hunt in London; Editing by Greg Mahlich and James Dalgleish)