LONDON Feb 27 (Reuters) - ICE raw sugar futures touched a 3-1/2-month high in early trading on Monday, with March's premium remaining firm, while arabica coffee and cocoa were little changed under pressure from a stronger dollar. SUGAR * Dealers monitored the front-month premium SB-1=R which indicated potential for a large delivery against expiry of the front-month March contract on Wednesday Feb. 29. * A European broker said the cane crop in the centre-south of top producer Brazil was progressing smoothly in generally favourable weather, noting expectations for centre-south production of 510-540 million tonnes of cane. * The dollar was likely to drive sugar futures in the short term, and the market looked vulnerable for a technical downward correction, another broker said. * ICE March raw sugar futures traded at 1.04 cent premium to May at 1012 GMT, up from 0.93 cents at the close on Friday. * March raw sugar on ICE firmed 0.13 cent or 0.5 percent to 26.32 cents a lb, after hitting a 3-1/2-month high of 26.42 cents earlier in the session. * London May white sugar futures climbed $4.30 or 0.7 percent to $665.70 per tonne. * An expected surge in global sugar production, a possible correction in prices and Brazil's move to revive the country's ethanol sector will take centre stage at an industry conference in Thailand this week. * An Indian committee to study deregulation of the sugar sector in the world's second biggest sugar producing country will submit its report in six months, the chairman of the panel said, after meeting officials from the food, farm and finance ministries. * Iraq has issued a tender closing March 4 for a minimum of 25,000 tonnes of white sugar, the Trade Ministry said on Monday. * Singapore-based Agrocorp International Ltd has secured a tender to supply 25,000 tonnes of white sugar to Bangladesh at $655.95 a tonne, including cost and freight, a senior procurement official said on Monday. * New York sugar SBc1 will peak at 26.46 cents per lb, as a wave "C" is approaching an end, according to Reuters market analyst Wang Tao. COCOA * Cocoa futures on ICE edged up with May up $15 or 0.6 percent at $2,372 a tonne. Prices were underpinned by recent tight arrivals of beans in West Africa. The firmer dollar limited upside potential. * The GEPEX group of exporters, which accounts for about 55 percent of Ivory Coast's cocoa exports, has agreed to end its boycott of auctions, three industry sources told Reuters on Thursday. * New York cocoa CCc2 is expected to drop to a range of $2,301-$2,307 per tonne as it is riding on a downward wave "c", according to Reuters market analyst Wang Tao. COFFEE * Arabica coffee futures on ICE edged lower, weighed by the firmer dollar. * May arabica coffee eased 0.8 cent or 0.4 percent to $2.0280 per lb. * Robusta coffee futures on Liffe dipped with May down $11 or 0.5 percent at $2,045 a tonne. * Dealers noted the tight structure of the board with March futures level trading at a premium of $8 to May LRC-1=R. * Speculators raised their net short position in arabica coffee futures and options on ICE Futures U.S. to the biggest level in six months, in the week ended Feb. 21, as the market tumbled to a 15-month low, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday. OTHER MARKETS * Germany's parliament will almost certainly endorse a Greek bailout on Monday despite growing pressure on Chancellor Angela Merkel to meet domestic calls to stop throwing money down "this crazy path". * Oil prices traded just below 10-month highs on Monday, keeping shares under pressure on fears over the impact of rising energy costs on global growth, while the European Central Bank's second offer of cheap money to euro zone banks mid-week supported the single currency. (Reporting by David Brough; editing by Jason Neely)

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