LONDON, Jan 9 (Reuters) - Raw sugar futures on ICE turned higher on Monday after hitting a two-month low, with the market finally finding some support after five consecutive daily declines.

SUGAR

* March raw sugar was 0.4% up at 19.03 cents per lb by 1209 GMT after touching a two-month low of 18.92 cents.

* Dealers said the recent slide in prices had been driven by fund selling against the backdrop of Brazil's decision not to reinstate federal taxes on gasoline in a move that could encourage more use of cane to produce sugar rather than biofuel ethanol.

* "That has rightly been taken as bearish for sugar, because it clearly implies that Lula’s government intends to rethink the fuel pricing policy of Brazil," broker Marex said in a note.

"That could end up with a price for gasoline based on extraction costs, so it could generate a very low ethanol parity, which would drag sugar prices much lower."

* Speculators cut their bullish bets in raw sugar futures on ICE U.S. in the week to Jan. 3, data from the Commodity Futures Trading Commission showed on Friday.

* Dealers were also keeping a close watch on the situation in the Suez Canal, though only minor delays were expected after tugs towed a cargo vessel that broke down during its passage through the waterway.

* March white sugar was up 1.3% at $534 a tonne.

COFFEE

* March arabica coffee rose 1.45% to $1.6060 per lb, regaining some ground after the previous session's fall to a 3-1/2 week low of $1.5715.

* Dealers noted more favourable crop weather in Brazil and rising exchange stocks had contributed to recent weakness. * March robusta coffee rose 2.2% to $1,865 a tonne. * Vietnam's December coffee exports were up 53.5% from the previous month at 197,077 tonnes, government customs data showed on Monday.

COCOA

* March London cocoa fell 0.1% to 2,045 pounds a tonne.

* Ghana's graded and sealed cocoa arrivals since the start of this year's harvest on Oct. 1 were at 350,000 tonnes as of Dec. 15, up 76% from 199,000 tonnes in the same period the previous season, figures from regulator COCOBOD showed on Monday.

* March New York cocoa was up 1.3% at $2,638 a tonne. (Reporting by Nigel Hunt Editing by David Goodman )