LONDON, March 13 (Reuters) - Raw sugar futures on ICE fell on Tuesday, weighed by a looming global supply glut and a slowdown in speculative short covering, while New York cocoa steadied near 16-month highs touched a day earlier.
* May raw sugar was down 0.07 cent, or 0.5 percent, at 12.86 cents per lb by 1156 GMT, having fallen to a session low of 12.83 cents.
* Prices hovered just above an eight-month low of 12.75 hit last week, after India increased its output forecast for this season, increasing the likelihood it will export to the world market sooner than expected.
* The market recovered some ground on Monday on light short covering by speculators, who hold a large bearish stance in the market but dealers said this buying had now dried up.
* They also noted participants were cautious about buying up the market, amid worries that producers are yet to hedge a sizeable chunk of their output.
* May white sugar also fell $1.80, or 0.5 percent, to $357.60 per tonne.
* The front month remained at a premium to the second position, suggesting potentially tighter nearby supply, despite a global glut that is expected to emerge later in the year.
* “We are not quite there yet and activity in Brazil has been adding some support,” INTL FCStone said in a market update. “However, healthy supply in Thailand, India and Europe will offset this when supply reaches the market.”
* May New York cocoa was unchanged at $2,546 a tonne.
* Prices surged as high as $2,558, a 16-month high for the second position, in the prior session.
* The market has rallied in recent weeks as speculators have embarked on an aggressive buying spree, amid signs of more modest production than initially expected from West Africa.
* However, dealers said the market was heavily overbought technically, which stalled the advance on Tuesday.
* May London cocoa was up 3 pounds, or 0.2 percent, at 1,794 pounds a tonne.
* Ghana may only produce around 700,000 tonnes of cocoa this season, well short of its initial forecast of 850,000 tonnes, due to poor rains during the main crop harvest, the head of the Cocobod marketing board told Reuters on Monday.
* May arabica coffee was up 0.10 cent, or 0.1 percent, at $1.1975 per lb.
* May robusta coffee fell $6, or 0.3 percent, to $1,775 a tonne. (Reporting by Ana Ionova; Editing by Susan Fenton)