Jan 18 (Reuters) - Raw sugar and arabica coffee futures on ICE firmed in early trading on Wednesday in light volumes, boosted by a weakening dollar. Cocoa futures on ICE edged up although concerns about the outlook for demand following last week's weaker-than-expected fourth-quarter European grind helped to cap gains. SUGAR * Raw sugar futures rose in early trade to stand near a two-week high. * March raw sugar futures on ICE rose 0.19 cent or 0.8 percent to 24.05 cents a lb by 0948 GMT after rising to a peak of 24.12 cents, below Tuesday's two-week high of 24.22 cents. * Dealers said the market remained rangebound, however, with the upside capped by large crops in the European Union and Russia as well as the prospect of further exports from India. Recent rains in Brazil eased concerns over the production outlook in the world's number 1 sugar producer, dealers said. * London March white sugar futures were up $1.10 or 0.2 percent at $629.80 per tonne. * Ukraine increased white sugar output to 2.34 million tonnes last year from 1.55 million tonnes in 2010, the Agriculture Ministry said on Wednesday. * New York sugar faces resistance at 24.07 cents per lb and only a break above this could open the way to 24.85 cents, according to Reuters market analyst Wang Tao. * The state-run Thai Cane and Sugar Corp (TCSC) has sold 31,333 tonnes of the current 2011/12 raw sugar crop to two international trading houses at premiums between 85 and 138 points over New York raw sugar futures, a senior official said on Tuesday. COFFEE * Arabica coffee futures on ICE were also higher with March up 0.2 cent or 0.09 percent at $2.2535 per lb. * Dealers said the market continued to derive support from continued below-par production in Colombia. * March robusta coffee on Liffe stood $20 or 1 percent higher at $1,865 a tonne. The contract hit $1,712 on January 9, the lowest level for the benchmark second month since October 2010. * Premiums of Vietnamese coffee prices to London futures narrowed in recent days following falls in futures prices, and trading has slowed after a brief pickup late last week before a long holiday, traders said on Tuesday. * New York coffee may end a moderate rebound about $2.3460 before a fall, according to Reuters market analyst Wang Tao. * Coffee exports from Nicaragua dropped to 52,120 60-kg bags in December, 45.7 percent less than was exported in the same month last year, the country's export board said on Tuesday. COCOA * Cocoa futures on ICE registered marginal gains with March up $12 or 0.5 percent at $2,282 a tonne. * Dealers noted concern about the demand outlook after a lower-than-expected 1.8 percent rise in the European cocoa grind in the fourth quarter of 2011 and a 7.4 percent fall in the Malaysian grind during the same period. * Demand for chocolate is improving by the month, even in the more difficult markets of Southern Europe, the chief executive of chocolate-maker Barry Callebaut said in an interview on Tuesday. * The market remained underpinned, however, by fears that dry winds in Ivory Coast may curtail production. * New York cocoa will rise towards $2,406 per tonne, as a retracement from this Jan. 11 high has been completed, according to Reuters market analyst Wang Tao. * Cameroon's only cocoa grinder Sic-Cacaos purchased some 25,114 tonnes by the end of December since the beginning of the 2011/12 season in August, according to figures issued on Tuesday by the National Cocoa and Coffee Board (NCCB) and the company. OTHER MARKETS * European shares fell on Wednesday morning, led lower by Tullow Oil < after a trading update and as uncertainty around Greek debt talks weighed on broader equity market sentiment. * Greece faces creditors on Wednesday in a renewed attempt to break a deadlock in negotiations to slash the country's debt and stave off default.

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