London coffee climbs

Liffe coffee closed up on Tuesday, rebounding from Monday's downturn after a session of mainly structural trade where a lack of producer hedge sales and light trade interest provided the main support, dealers said. Liffe September closed $17 up at $1,308 a tonne after moving 7,256 lots between $1,318 and $1,285. The key second-month position registered a fresh contract high of $1,333 on Monday.
Spot July added $16 to finish at $1,278 on 5,989 lots, taken from a total turnover of 15,028 lots, sharply down from nearly 20,000 lots on Monday.
"We've held up well. Outright volumes haven't been huge and there's a lot of spreading been done, but it's strong...and that could be enough ground for more (gains) tomorrow," a trader said, adding that higher arabica prices in New York had helped to keep London underpinned.
London robusta prices have climbed by 70 percent since the start of the year thanks to growing speculative long positions, coupled with poor weather prospects and talk of a long-held contract default in top robusta grower Vietnam.
German analyst F.O. Licht said world coffee supplies may fall seven million 60-kg bags short of demand in 2005/06, largely due to a projected drop in output from Brazil and Vietnam.
In April, it said the deficit might be around 10 million bags.
COCOA FIRMER:
London cocoa futures closed firmer in moderate volumes on structural trade on Tuesday, and dealers said they expected the market to remain range-bound in the near term.
July settled up three pounds at 822 pounds in volume of 3,245 lots, having moved from 826 pounds to 813 pounds.
September concluded up three pounds at 831 pounds in volume of 1,921 lots, having traded from 835 to 821 pounds.
Farmgate prices in Ivory Coast's cocoa regions were stable to lower from May 30 to June 5, Coffee and Cocoa Bourse data showed on Tuesday, as heavy rains damaged roads leading to the bush and made it harder to dry beans.
SUGAR BARELY CHANGED:
London white sugar futures settled little changed, with activity centred on trade buying and arbitrage in moderate volumes on Tuesday, traders said.
Front month August concluded down 10 cents at $249.90 a tonne in volume of 2,064 lots, having traded from $252.10 to $249.0.
October finished up 20 cents at $244.00 in volume of 443 lots after trading from $246.40 to $243.10.