* Failure to match 2-1/2 year highs prompts profit-taking
* Coffee traders keeping close watch on Brazil weather
* Lower Q3 cocoa grinds expected (Updates with closing prices, adds market comments, adds byline, NEW YORK dateline)
By Luc Cohen and Nigel Hunt
NEW YORK/LONDON, Oct 7 (Reuters)...
Read more: ICE arabica coffee drops in late-session selloff
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