SOFTS-Robusta coffee prices edge higher, set for weekly gain

LONDON, Aug 29 (Reuters) - Robusta coffee futures edged higher on Friday but remained well below the prior session's three-month peak, with the market's recent strong rally appearing to be losing steam.

COFFEE

Robusta coffee futures LRCc2 rose 0.3% to $4,823 a metric ton by 1146 GMT, hovering just below the prior session's three-month high of $4,986.

The market was on track for a weekly gain of 3.7%.

Prices have been supported by speculative buying against the backdrop of a slow but steady decline in exchange stocks as U.S. roasters scramble to secure supplies after the U.S. government imposed a 50% tariff on imports from Brazil.

"While the rally in robusta and arabica prices may have slowed, further price increases cannot be ruled out in the near term. Speculative activity remains influential in a low stock, low-liquidity environment," Rabobank said in a note.

Arabica coffee futures KCc2 lost 0.1% to $3.77 per lb, after setting a 3-1/2 month high of $3.9130 on Thursday.

SUGAR

Raw sugar SBc1 lost 0.1% to 16.46 cents per lb.

Dealers were awaiting the release later on Friday of data on sugar and cane production in Center-South Brazil covering the first half of August.

Brazil's Sao Paulo state, which produces about half of the country's sugarcane, is expected to face intense heat and dry weather next week in key growing regions, potentially further reducing yields of the crop, EarthDaily said on Thursday.

White sugar LSUc1 was unchanged at $493.20 a ton.

COCOA

London cocoa LCCc2 rose 0.2% to 5,357 pounds a ton.

Dealers said the expiry of London September 25 options on Friday had provided a short-term focus.

New York cocoa CCc2 was down 0.9% at $7,745 a ton.