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 0.5% up at 19.04 cents per lb by 1408 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."
* Dealers were also keeping a close watch on political unrest in Brazil after supporters of the country's former president Jair Bolsonaro stormed the capital over the weekend.
* March white sugar was up 1.4% at $534.60 a tonne.
COFFEE
* March arabica coffee rose 0.8% to $1.5950 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 1.9% to $1,860 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 New York cocoa was up 2% at $2,656 a tonne.
* Dealers said the market was supported partly by concerns that dry weather in Ivory Coast could reduce the size of the mid-crop in the world's top producer.
* March London cocoa rose 0.4% to 2,056 pounds a tonne with gains curbed by the strength of sterling. (Reporting by Nigel Hunt Editing by David Goodman and David Evans)
