* Brazil warehouse fire will not affect sugar fundamentals     * Cocoa near three-year peak     * Coffee trade watching Brazil crop damage reports   (Updates with closing sugar/coffee prices)     By Marcy Nicholson and David Brough     NEW YORK/LONDON, Aug 6 (Reuters) - Raw sugar turned higher on Wednesday on signs of renewed physical demand after dipping to a 5-1/2 month low, while cocoa futures flirted with a three-year high on robust demand.     Arabica coffee on ICE Futures U.S. turned higher in choppy dealings while Liffe robusta fell for the third straight day.     Benchmark ICE October  
   SBc1
    raw sugar futures rose 0.19 cent, or 1.2 percent, to settle at 16.32 cents a lb, after falling to 16.06 cents, the lowest for the spot contract since Feb. 19. The contract marked an outside reversal higher, a technical formation exceeding the prior session's low and high that has the potential to attract chart-based buying.     "We might be seeing some physical interest again. When we get near round numbers it seems to perk up a bit," said Michael McDougall, a vice president for Newedge USA in New York, referring to the session low near 16 cents.     Referring to the 5-1/2-month low reached earlier, Kona Haque, head of research at London-based commodities house ED&F Man, said: "It's a reflection of a very heavy (over-supplied) market. The demand side is pretty quiet."     The sugar market is at the low end of its previous range after a brief 5.6 percent spike in prices to a session high of 17.26 cents a lb on Monday, the highest since July 24, after news of a warehouse fire in Brazil's Santos port. The fire was contained. Brazil is the world's top sugar producer and exporter.     October whites on Liffe  
   LSUc1
    rose $5.10, or 1.2 percent, to close at $436.80 a tonne.     ICE September arabica coffee futures  
   KCU4
    closed up 1.45 cents, or 0.8 percent, at $1.9085 per lb.     Uncertainty persisted over the size of Brazil's coffee crop after drought conditions in January and February, which were expected to hit this year's as well as the 2015/16 crops. Some analysts lowered their expectations last week, and dealings have been volatile and choppy.     "There is still some more yield data due to come out," Haque said. "The Brazil harvest is well advanced."     Brazil is the world's top coffee producer.     November robusta coffee futures on Liffe  
   LRCX4
    fell $11, or 0.6 percent, to end at $1,996 per tonne.     In cocoa, benchmark ICE September futures  
   CCc1
    closed up $24, or 0.8 percent, at $3,219 a tonne in heavy volume, near Monday's three-year high of $3,239.     Liffe December cocoa futures  
   LCCc2
    ended up 15 pounds, or 0.8 percent, at 2,002 pounds per tonne, just below Monday's three-year high at 2,011 pounds.     "A break above (2,000) opens the potential for solid gains towards the 2,010-2,050 area," said Myrto Sokou, senior research analyst with Sucden Financial.   (Editing by Keiron Henderson, Jane Baird and Gunna Dickson)  ((Marcy.Nicholson@thomsonreuters.com, +1 646 223 6043; Reuters Messaging Marcy.Nicholson.ThomsonReuters.com@reuters.net))  Keywords: MARKETS SOFTS/