London coffee closed at its highest level in a week on Thursday after gaining strength from a moderate rebound in New York prices, dealers said. London's benchmark September robusta futures closed $16 higher at $1,239 a tonne after trading 5,407 lots in a $1,219-1,240 range. Total volume was 10,817 lots.
Recent fund liquidation in New York has caused market jitters about a similar slump in Liffe prices but gains in New York that pushed the arabica market out of the range of the past 10 days gave London a lift. "It's up on the strength of New York but continued origin selling keeps it under wraps," one trader said.
The New York Board of Trade's benchmark September jumped to a two-week high of $1.091 a lb.
The world's largest coffee co-operative, Cooxupe, says arabica output in its area is expected to fall by 44 percent to 3.99 million 60-kg bags in 2005/06 (July/June) from 7.07 million bags last year due to the downturn in the biennial crop cycle and poor weather.
COCOA HARDLY MOVES: London cocoa futures were steady on Thursday as currency support offset pressure from origin producer selling, dealers said.
Liffe's September and December contracts both moved over 3,600 lots on spread activity, making up most of the 11,001 lot total.
Benchmark September ended down three pounds at 839 pounds a tonne after an 852-865 range. December also shed three pounds and finished at 858 following trade between 852 and 865.
Front-month July eased by five pounds to 825 pounds a tonne on its final trading day. It had volume of 468 lots in an 824-833 price band.
Traders were expecting a large delivery against the contract on Friday.
SUGAR LOWER: London white sugar futures closed mainly lower on Thursday after a choppy session in which speculators took profits from fresh trade-driven seven-year highs.
Most-active Liffe October sugar closed $4.20 lower at $284.00 a tonne on 4,515 lots after trading between $290.90 a tonne and $283.00.
Spot August closed 30 cents up at $314.00 a tonne, having eased back from a new seven-year front month continuation high of $324.00. The contract's lowest point was $305.00.
"The market went up to new highs on trade and speculator buying, and then speculators took profits," a trader said.
A lack of Brazilian refined, or white, sugar supplies, compounded by unexpectedly strong Pakistani and Iraqi demand, and plans by the European Commission to hold over sugar intervention stocks, have fuelled the latest rally in white sugar futures.
Front-month white sugar futures are up 17 percent this year, with much of the jump seen since June.
The European Union sold 71,250 tonnes of white sugar at a maximum rebate of 37.90 euros per 100 kg at Thursday's tender, traders and an EU official said.
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