London robusta coffee futures settled up on Wednesday after rising over 4 percent to a fresh 6-1/2-year high on speculative buying amid supply tightness, dealers said. "It's large spec buying," one dealer said.
The benchmark November contract settled up $45, or 3.2 percent, at $1,443 a tonne after moving between a contract high of $1,472 and $1,408. Total volume was a relatively heavy 52,437 lots.
The market hit a previous 6-1/2-year high of $1,451 on a second-month continuation basis on Thursday.
"There is the issue of tightness in robusta supplies," another dealer said.
The front-month September contract expired at $1,500 on Wednesday, having earlier risen over 12 percent to touch $1,584.
Tightness in supply of robusta, used to make soluble coffee, has driven recent rallies and dealers expect trading to remain volatile due to the speculative money that has entered the market.
The price structure in the London robusta market is also indicating supply tightness ahead, with contracts for delivery out to July 2007 trading at a premium.
SUGAR WEAKENS:
London white sugar futures closed weaker on arbitrage and speculative selling against trade buying on Wednesday, erasing early gains after talk of fresh offtake, traders said.
Front-month October settled down $6 at $391.50 per tonne in volume of 2,299 lots, after trading from $399.40 to $388. December finished down $7.60 at $388 per tonne in volume of 799 lots, having moved from $399 to $387.
COCOA RISES:
London cocoa futures ended up on Wednesday on speculative short covering while switches dominated trading, dealers said.
The most-active December contract settled up 5 pounds, or 0.6 percent, at 882 pounds a tonne after trading between 893 and 873 pounds. Total volume was a quiet 9,087 lots. The front-month September contract was up 3 pounds at 852.
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