* Dry weather damage to Brazil coffee crop unclear

* Liffe March white sugar delivery totalled 236,850 T

* New York markets closed Monday for Presidents Day

(Adds details, quotes, updates prices)

By Sarah McFarlane

LONDON, Feb 14 (Reuters) - ICE arabica coffee futures steadied on Friday as dealers monitored improving weather conditions in top grower Brazil, where much needed rains have resumed.

Sugar prices were lower, while cocoa was little changed.

Dealers said it would be difficult until the harvest to assess the damage to Brazil's coming coffee crop from recent unseasonably dry weather, although the forecast rains were seen alleviating some of the stress to trees.

"Dry summers like this are extremely rare, and the market can't look to a couple of years ago for comparison of consequences," Volcafe, the Swiss-based coffee division of commodities house ED&F Man, said in a weekly note.

"Rains are forecasted to fall tomorrow and Saturday, and again next weekend."

May arabica coffee futures on ICE KCc2 edged up 0.25 cents or 0.2 percent to $1.422 per lb at 1544 GMT.

"I don't think the damage is irreversible if they have a good amount of rain," a London-based broker said.

Meanwhile on the physical market, dealers said there had been particularly active selling from Brazil, taking advantage of the weather-led rally which began around two weeks ago.

"Although all the negative news is coming from Brazil, this origin is the keenest seller," Volcafe said.

Liffe May robusta coffee LRCc2 fell $14, or 0.8 percent, to $1,808 a tonne.

SUGAR DOWN

Rain in Brazil was also weighing on raw sugar futures, which eased towards last month's 3-1/2 year low.

ICE March raw sugar futures SBc1 were 0.07 cents or 0.5 percent lower at 15.59 cents per lb.

"It's raining today, so I think a lot of the doom and gloom has been alleviated," a European analyst said, referring to earlier suggestions that the dry spell could cut the top sugar cane grower's crop prospects.

"We've got a couple of months until harvest and it's a pretty hardy crop."

Dealers awaited further clarity on India's plans to support its local sugar industry, a move which is expected to increase the country's exports.

"March flat price remains in a rough 15.40/15.90 range, and until the fine print of the Indian subsidy rule is worked out or there are further weather developments, we don't expect much to change," Nick Penney of brokerage Sucden Financial said.

May white sugar futures on Liffe LSUc1 eased $2.20 or 0.5 percent to $441.00 per tonne.

The Liffe March white sugar delivery totalled 236,850 tonnes or 4,737 lots, in line with market expectations.

ID:nL5N0LJ2AX ID:nL2N0LI22E

Cocoa futures held near 2-1/2 year highs, supported by solid global demand growth for chocolate products.

May cocoa on Liffe LCCc2 eased 3 pounds to 1,855 pounds ($3,100) a tonne, having on Wednesday peaked at 1,871 pounds, the highest for the second-month since September 2011.

May cocoa on ICE CCc2 was up $9 or 0.3 percent at $2,967 a tonne, having earlier matched Thursday's 2-1/2 year high of $2,977.

New York markets are closed on Monday for Presidents Day.

($1 = 0.6011 British pounds)

(Reporting by Sarah McFarlane; Editing by Anthony Barker and Jane Baird)

((sarah.mcfarlane@thomsonreuters.com)(+44 20 7542 5937)(Reuters Messaging: sarah.mcfarlane.thomsonreuters.com@reuters.net))

Keywords: MARKETS SOFTS/