London cocoa futures finished lower on Tuesday, backtracking from a two-week high, as participants judged the previous session's gains to be overdone.
Traders were split on future direction, with some expecting any rallies to be short-lived and others predicting support from both speculative and industry buyers.
"Maybe we went too far yesterday, but it's two steps forward, two steps back at the moment ... I still expect some higher levels, the market is short and industry needs to buy," said one trader.
Liffe's benchmark December contract closed at 840 pounds a tonne, down one percent, on volume of 2,024 lots from a total of 3,797. The contract's range was 831 to 854 pounds.
COFFEE DOWN: An improvement in weather conditions for crops in Brazil and the prospect of plentiful supplies from Vietnam pulled London robusta coffee futures lower on Tuesday, traders said.
Front-month November lost $4 to end at $600 a tonne and traded within a $597-$609 range on volume of 3,527 lots from a total of 9,363.
Vietnam, the world's largest robusta producer and exporter, started its new 2004/2005 harvest this month.
Still, scale-down buying was offering the London market support at about $580/600, preventing a break of the $593 level, dealers said.
SUGAR ENDS HIGHER: London white sugar futures closed higher on fund and trade buying against producer selling on Tuesday.
Liffe December settled up $2.50 at $249.50 a tonne in volume of 4,979 lots, having moved in a range of $252.2 to $244.70.
March ended 70 cents up $263.10 a tonne in volume of 2,519 lots, having moved in a range of $265.60 to $259.50.
Total volume was a brisk 7,560 lots.
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