(adds quotes, byline, background, updates prices)

By Nigel Hunt

LONDON, Aug 31 (Reuters) - Cocoa futures on ICE fell to the
lowest levels in more than one-year on Tuesday, weighed both by
generally favourable crop prospects in West Africa and
broad-based losses in oil and other commodities.

Arabica coffee and raw sugar futures on ICE were also lower
as concerns about the economic outlook triggered losses in
global equity markets.

Liffe markets reopened on Tuesday following a U.K. holiday
with cocoa quickly setting an 11-month low.

"Clearly, for the short-term at least, the more
bearishly-inclined have the upper hand (on cocoa), driven partly
no doubt by the flow of news stories and comments forecasting a
much better 2010-11 crop out of Ivory Coast," ABN AMRO said in a
report issued on Tuesday.

"As prices have retreated, industry buying has stepped up
significantly, suggesting industry cover has been rather lower
than might have been imagined," the report added.
December cocoa futures on ICE fell $17 to 0.6 percent to
$2,697 a tonne by 1147 GMT after earlier slipping to $2,690, the
lowest level for the second month since mid-July 2009.

Prices in London also fell with December down 10
pounds at 1,921 pounds a tonne after earlier hitting an 11-month
low of 1,915 pounds.

Dealers also noted the nearby premium continued to decline
as concern about tightness in available supplies to tender
against September diminished.

FALLING STOCKS

Arabica coffee futures fell back slightly after surging on
Monday but remained underpinned by falling exchange stocks.

"Given the context of declining certified exchange stocks in
the US (arabica) and London (robusta) and the remaining
possibility that a double-dip recession may be eluded (and thus
demand growth remain around one to two percent), then the recent
rise in coffee prices may look fairly mild by this time next
year," ABN AMRO said.

ABN AMRO, however, raised on Tuesday its forecast for global
robusta coffee production in 2010/11, widening an anticipated
surplus.

December arabica futures on ICE fell 2.60 cents or 1.4
percent to $1.7880 per lb while November robustas on Liffe
eased $12 to $1,625 a tonne.

Raw sugar futures were mostly lower in slim turnover, with
the market facing key resistance at 20 cents a lb, as dealers
turned their attention to longer-dated positions which were
well-supported due to concerns over limitations of Brazilian
production capacity to meet demand, dealers said.

"July and October 2011 positions have been strong
performers. People are looking further down the line," said Jake
Weatherall, a London-based soft commodities trader with
Rabobank.

"Is Brazil going to be able to get the production growth to
meet global demand? There are doubts, with the infrastructure
problems we've seen this year," he added, referring to heavy
congestion at Brazilian ports delaying new-crop sugar loadings.

ICE October raw sugar futures were down 0.05 cent to 19.76
cents a lb while Liffe October white sugar was down $2.80 or 0.5
percent to $574.50 per tonne.

(Additional reporting by David Brough; Editing by William
Hardy)