* ICE arabica coffee breaks above $3/lb
* Dealers await resumption of I.Coast cocoa exports
* Sugar bounces up after 15 pct decline in 2 weeks (Recasts, updates prices, market activity, adds second byline, dateline, previously LONDON)
By Marcy Nicholson and Sarah McFarlane
NEW YORK/LONDON, April 20 (Reuters) - Arabica coffee prices jumped above $3 per lb and hit a 34-year high on Wednesday on a shortage of high-quality beans, bullish charts and a broad commodities rally fueled by a weaker dollar.
Cocoa extended gains as commodities rallied and dealers awaited news of top producer Ivory Coast's resumption of exports and the condition of its mid crop. Sugar jumped after falling 15 percent in the past two weeks on improving investor sentiment.
Upbeat earnings from companies lifted stocks and boosted investor appetite for riskier assets, driving commodities higher and the Australian dollar to a 29-year high versus the U.S. dollar.
ICE arabica coffee futures prices broke above the psychological $3.00 a lb, maintaining their upward momentum that has seen a 17 percent lift in the past two weeks. (Graphic: http://link.reuters.com/fuc29r )
"People just want to buy, that's basically it. The dollar's at a new low. People want to own things. You don't want to be short," said Nick Gentile, head of trading at Atlantic Capital Advisors in Jersey City.
The euro surged to its highest in 15 months against a weaker dollar after a bond auction from Spain was well received.
"On the upside, potential above the recent high could be for even further extension toward $3.2949/lb," brokerage Sucden Financial said.
Benchmark July arabicas on ICE moved up 5.35 cent or 1.8 percent at $2.9960 a lb at 1523 GMT, after surging to $3.0250 a lb earlier in the session, the highest for the second position since 1977.
While global coffee supplies are adequate, there availability of mild washed arabica remains limited after several smaller-than-average crops in key producer Colombia.
"The funds continue to view coffee as a long-term buy while producer selling is limited and scale-up," a London-based broker said.
July robusta coffee gained $37, or 1.5 percent, at $2,489 a tonne at 1524 GMT.
Indonesia robusta beans stayed at premiums to London futures as purchases from domestic roasters stirred trade, while Vietnam could be under pressure from the prospect of a bigger output in the next crop, dealers said.
COCOA EXTENDS GAINS
Cocoa prices extended gains, fueled by the commodities rally, strong support at the 200-day moving average, and as dealers awaited news on the resumption of exports and the condition of the mid crop in top grower Ivory Coast.
"The fundamentals are bearish but at these prices there should be industry buying here to support the market, unless we're looking at a maybe 200,000-tonne surplus," Gentile said.
The country is beginning to recover from a violent post-election power struggle that ended last week with the arrest of former President Laurent Gbagbo. The first shipments of cocoa are expected within days although normal volumes are not expected before the end of April.
"Supply risk plummets, but uncertainty persists in Cote d'Ivoire," said Abah Ofon, commodities analyst at Standard Chartered Bank.
ICE July cocoa futures gained $50, or 1.6 percent, at $3,117 a tonne at 1522 GMT, while NYSE Liffe July cocoa inched up 6 pounds or 0.3 percent to 1,935 pounds a tonne.
Sugar futures saw a short-covering bounce, helped by the rebound in crude oil, equities and the weaker dollar.
"Sugar is caught up in a commodities wide bounce," said James Kirkup, head of sugar brokerage at ABM AMRO (Markets) UK Ltd.
Dealers noted tight supplies of ethanol in top sugar producer Brazil could encourage mills to maximize ethanol production in the cane crush.
They said ample cane supplies in the pipeline from Brazil and Thailand put price risk to the downside for sugar futures.
ICE May raw sugar futures jumped 0.59 cent, or 2.4 percent, at 24.86 cents a lb, while benchmark July rose 0.56 cent, or 2.5 percent, to 23.18 cents per lb at 1521 GMT. NYSE Liffe August white sugar futures climbed $10 or 1.6 percent at $635.00 a tonne in moderate volume of 2,500 lots. (Additional reporting by David Brough in London; Editing by Anthony Barker and David Gregorio)