World robusta coffee futures closed up on Tuesday but off a fresh seven-year high hit on the back of news on damage to stocks in Italy just as supplies from top producer Vietnam start to run out.
Dealers said weakness in New York pulled the market off the day's peak.
The benchmark November contract closed up $35, or 2.3 percent, to settle at $1,570 after trading between $1,586 and $1,535. Total volume was a strong 23,562 lots.
"We thought New York would be supported by London. It didn't happen and then London came down because of New York," one dealer said.
September coffee settled up over 7 percent at $1,745, the top price for a nearby contract since January 2000. Its premium over November rose to as much as $175.
Euronext.liffe said late on Monday it suspended 3,098 five-tonne lots of coffee stored in the port of Trieste, potentially cutting the amount of robusta available to be delivered against the exchange's futures contracts by as much as 16 percent.
"The catalyst was the announcement by the exchange. It has fanned the fire and coincides with problems we had already with the drawdown of stocks," a trader said.
Inventories certified by Euronext.liffe stood at 19,428 lots as of mid-August, already the lowest in six years.
Robusta is largely used to make soluble coffee and is already in short supply after a drought-induced drop in Vietnamese production in the 2005/06 season. The better-quality arabica variety trades in New York and mainly grows in Brazil.
SUGAR STEADIES:
London sugar futures closed mixed after a quiet session dominated by arbitrage selling on Tuesday, traders said.
Benchmark October settled unchanged at $378.00 per tonne in volume of 1,891 lots, after trading from $381.10 to $373.00.
December finished up 90 cents to $377.90, having moved from $377.70 to $373.10.
"We've seen arbitrage selling this afternoon, at an October-October (London-NYBOT) premium of $108, against good trade buying," one trader said.
Traders said news of Tunisian sugar buying had already been digested by the market.
COCOA DOWN:
London cocoa futures closed down on Tuesday but off a fresh 2-1/2-month low reached earlier in the session due to fund selling, dealers said.
The most-active December contract settled down 8 pounds, or 0.9 percent, at 855 pounds, just off the low off 854 pounds earlier in the session. The top of the day's range was 864 pounds and total volume was a strong 10,782 lots.
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