London coffee up

03 Aug, 2005

London coffee futures jumped on Tuesday, bouncing back from an earlier 3-1/2-month low after fund buying in New York boosted speculative interest, dealers said. London's benchmark September and second-month November contracts closed just over four percent stronger at their session highs after each moved over 5,100 lots.
September ended at $1,130 a tonne after earlier making a low of $1,050 - the weakest price since April 19. November finished at $1,159 after touching $1,079. Total volume was 12,103 lots.
"The market is quiet, so if some speculator comes in and buys, it pushes the market up," one dealer said. "It must be funds. They are more active than everybody else in the market at the moment, there is nothing happening on the physical side."
The New York Board of Trade's most-active September arabica contract jumped three percent to touch $1.06 a lb.
Farmers in Brazil, the world's biggest producer, are selling only enough to cover harvest costs because they expected the government to reduce its estimate of the national coffee crop next week, which should push international prices higher.
COCOA ENDS HIGHER:
London cocoa pushed slightly higher on Tuesday, supported by technical buying and further delays to the Ivory Coast peace process, dealers said.
The September contract closed six pounds stronger at 886pounds a tonne. Turnover was 2,014 lots in a 879-890 price range, while total volume was 4,276 lots.
"It is mostly short covering...We have seen steady gains...it is generally bullish news and people are concerned this isn't the end of it," one dealer said.
Analysts and diplomats said Ivory Coast was unlikely to hold presidential elections as planned on October 30 due to missed disarmament deadlines and arguments over the West African state's peace plan.
Cocoa had crawled to a fresh one-month high on Monday after rebels said they would not begin the first stage of a disarmament programme due to have started on Sunday.
Expectations of an early and sizeable West African main crop for the 2005/06 season are offsetting concerns about tension in Ivory Coast.
SUGAR ENDS HIGHER:
London's white sugar market closed more than one percent stronger on Tuesday, making a late recovery after its New York counterpart broke through a key resistance level, dealers said.
Front month October closed up $3.4 at $292.7 per tonne in volume of 2,102 lots after trading from $287 to $292.8.
New York's front-month October raw sugar contract raced to a contract peak of 10.10 cents a lb, the highest benchmark price in almost 4-1/2 years.

Read Comments