London robusta coffee futures weakened as support levels were tested but failed to break as roaster buying offset fund selling. LIFFE September coffee was down $7 at $672 a tonne after reaching a new contract low of $664 earlier. That's the weakest for a second-month position since 21 November 2003.
The market is waiting to see if a support level of about $660 will break.
One dealer said that could push prices down to as low as $500, a level not seen since August 2002.
"The market looks very vulnerable though for the moment it's holding," a trader said. "Roasters have been buying as it's an attractive level so they don't want to ignore it."
Roasters have been extending their forward cover during the past few weeks, increasing concern about a correction.
Trading in New York has failed to help, with light speculative sales maintaining a negative trend.
On fundamentals, coffee trade in Vietnam, the world's biggest robusta grower, ground to a standstill as domestic businesses held onto stocks in a bid to curb falling prices, traders said on Tuesday.
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