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Tropical depression Matthew weakens


    By Sarah Grainger

    GUATEMALA CITY (Reuters) - Tropical Depression Matthew weakened sharply over Central America on Sunday and spared Guatemala from major damage, but heavy rain still threatened already waterlogged sugar and coffee farms.

    Guatemalans in the eastern jungle region waded through flooded streets carrying children and belongings on their shoulders and rescue workers worked to open roads blocked by small mudslides, but the storm's impact appeared to be light.

    "Up to now there've been no reports of deaths or wounded," said Alejandro Maldonado, a senior official at Guatemala's emergency services, adding that some 500 people had been evacuated from eastern towns.

    Rescue workers in Guatemala and the southern Mexican state of Tabasco remained on alert as river levels rose, however.

    The storm's maximum sustained winds decreased to near 25 mph (35 kph) on Sunday, the U.S. National Hurricane Centre said. But it warned of continued heavy rains.

    Matthew could dump up to 20 inches (50 cm) of rain in some areas of southern Mexico and eastern Guatemala. Mexico's oil ports were open and operating normally on Sunday.

    Coffee and sugar farmers face rain on fields already clogged from this year's active hurricane season. Growers worry rain from Matthew could delay the start of coffee and sugar harvests.

    Sugar losses might be serious because cane fields are still flooded from earlier rains. Coffee trees also risk disease and fungus from too much moisture.

    Central America produced 4.43 million tonnes of sugar in the 2009/10 harvest and was hoping for a larger crop this year. [ID:nN0496794] Matthew's rains, if they last for days, could start affecting coffee in Guatemala.

    Matthew reached Nicaragua's coast on Friday, powered along the Honduran Caribbean and hit Belize and Guatemala.

    More than 260 people have died in Guatemala so far this year in mudslides and flash floods. In 1998, Hurricane Mitch tore through Central America, killing more than 11,000 people. It was the second most deadly storm on record.

    (Writing by Robin Emmott)