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Liffe cocoa futures closed at the lowest level since mid-June after speculative selling in the London and New York market, dealers said. London's spot September contract slipped 1.3 percent to 827 pounds a tonne, extending Monday's 2.4 percent decline. It moved 4,826 lots in an 826-840 price band.
"The New York market continued to be under pressure so some of the day traders bailed out," a dealer said.
Liffe values broke below recent lows but found some support from trade and industry with good buying noted on second-month December.
December drew the most business, trading 5,136 lots and finishing 0.9 percent lower at 848 pounds. March turned over 3,183 lots and closed at 869 pounds, down 0.8 percent.
Overall turnover was 13,864 lots and dealers reported brisk spread activity as funds rolled out of the front month.
COFFEE DOWN London robusta coffee lost $10 across the board on Tuesday, closing lower for a third straight session as speculators sold following the previous weak close, dealers said.
Liffe's front-month September closed at $1,085 a tonne after volume of 5,243 lots in a $1,081-1,100 range.
Second-month November finished at $1,115 following turnover of 4,551. Volume totalled 11,744 lots after some active spread trading.
Liffe prices traded about $10 down most of the day, shrugging off a minor pickup on the New York market, which closed almost three percent lower on Monday.
SUGAR ENDS WEAKER London white sugar futures closed lower on fund profit taking in strong volumes on Tuesday, and traders said they expected funds to continue to get out of their large net long positions.
Front-month October settled down $3 at $285.5 per tonne in volume of 3,400 lots, after trading from $285 to $290.5.
December settled down $2.5 at $276.5 per tonne in volume of 676 lots, having moved from $276.1 to $281.5.
"It is fund selling, and profit taking," one trader said, referring to a reversal of early gains in brisk volumes.

Copyright Reuters, 2005

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