* Broker sees choppy dealings in arabicas

* Sugar rally stalled by sluggish demand, ample supplies

By David Brough

LONDON, May 20 (Reuters) - Arabica coffee futures on ICE edged up on Tuesday in nervous and choppy conditions as the market awaited a clearer picture on the extent of crop damage in top grower Brazil, while cocoa and sugar prices were little changed.

July arabica coffee futures on ICE KCc2 traded up 0.55 cents, or 0.3 percent, at $1.8405 per lb at 1032 GMT.

Benchmark coffee prices surged to an over two-year high of $2.19 a lb in April, supported by concerns over the outlook for the crop in Brazil following dry weather earlier this year.

One London-based coffee broker said he expected volatile speculative-driven swings in arabica coffee prices to continue while uncertainty about the crop persists.

"There has been quite a significant pullback from the April high, but I don't think it is due to anything fundamental," the broker said.

Liffe July robusta coffee LRCc2 traded up $3, or 0.15 percent, at $2,040 a tonne.

In cocoa, the most-active July contract on Liffe LCCN4 was up one pound or 0.05 percent to 1,840 pounds per tonne while July futures on ICE CCN4 rose $7 or 0.2 percent to $2,937 a tonne.

Speculators cut their net long position on ICE by 5,737 contracts, or 12 percent, to 41,866 contracts, reducing the position for the third straight week, U.S. Commodity Futures Trading Commission data showed on Friday.

This is speculators' smallest net long position in cocoa in nine months.

"The length reduction was greater than expected," said Eric Sivry, head of agri options brokerage at Marex Spectron.

"The smart money has been running short the market," he added. "So? Why not cover, why not lock in some profit? Given that the Bali conference chatter (last week) was not that friendly."

Talk of higher world production pervaded the market following the Bali cocoa conference last week, potentially shrinking an anticipated global deficit this season.

Raw sugar futures held below last week's 9-week high of 18.28 cents per lb with a rally driven by bullish data about Brazilian output running out of steam as demand remained sluggish and supplies ample.

The ICE July raw sugar contract SBN4 was unchanged at 17.77 cents a lb.

"End destination demand continues to remain fairly sparse, but there certainly appears to be no shortage of supply or availability," one London-based sugar broker said.

August white sugar on Liffe LSUc1 slid $0.20, or 0.04 percent, to trade at $482.20 a tonne.

(Editing by Mark Potter)

((david.brough@thomsonreuters.com)(+44 20 7542 8064)(Reuters Messaging: david.brough.thomsonreuters.com@reuters.net))

Keywords: MARKETS SOFTS/