London's coffee market ended several pounds lower on Tuesday after profit taking knocked prices from a five-month high and ended a week-long gaining streak, dealers said.
Robusta for March delivery touched $1,234 a tonne, the highest since July 19 before collapsing to a session low of $1,175 and closing $8 down at $1,193. The contract drew trade of 15,516 lots out of a total of 30,229.
Prices are still up 10 percent since Thursday's close after three days of heavy fund buying and strong market turnover.
"We have had a three-day fund-led rally but now it has slipped," a trader said. "Funds have backed off, there has been some profit taking and some short selling."
Prices are now $140 off a 5-1/2 year high touched earlier this year. Large investors have returned as buyers just as wet weather delays harvesting in Vietnam, reducing the flow of robusta when supply should be peaking. Funds, many of which buy and sell according to technical signals rather than fundamentals, have also been drawn by the market's break out of a recent range, dealers and analysts said.
COCOA ENDS FLAT: London cocoa prices ended mixed on Tuesday and most of the volume came from trade Against Actuals as market players adjusted their positions ahead of the front-month's expiry, traders said.
Liffe's spot contract December closed at 843 pounds a tonne, up six pounds on its last trading day. It moved 8,514 lots of mainly AAs.
Benchmark March and other contracts finished one to two pounds lighter with March ending at 875 after turnover of 11,634. Overall volume was 21,084 lots.
Cocoa - basis March - has steadied under the 900 area after origin hedging, particularly by Ghana, helped cut prices back from a 12-week high touched earlier this month of 902.
SUGAR DOWN: London white sugar futures closed down on Tuesday as producers and speculators took profits from a recent rally to nine-year highs, and traders said the outlook remains bullish.
Front-month March settled down $3.30, or one percent, at $339 per tonne in volume of 2,561 lots, after trading from $335.6 to $340.5. May concluded off $3 at $349.5 per tonne in volume of 506 lots.
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