London robusta coffee futures finished higher on Monday as the market rebounded from Friday's setback, boosted by a sharp advance in New York's arabica market despite showers in Brazil, dealers said.
White sugar futures were also higher as trade and speculative buyers stepped into the market, while cocoa finished slightly down but well within recent range's. Dealers said coffee prices fell early following showers in Brazil. Rains are needed during the next few weeks to aid coffee tree flowering.
"We were expecting the market to come down today after we have a few more showers in Brazil over the weekend but I think there was fund buying in New York," one dealer said, adding funds were adding to an already substantial net long position.
Dealers said some short-term traders also decided to cover short positions as the market began to recover, accelerating the advance in prices. November ended $13 higher at $1,880 a tonne after dipping early to a low of $1,852. Total volume on robustas was a light 5,073 lots.
SUGAR RECOVERS:
White sugar futures were higher, boosted by trade and speculative buying after one trade seller had driven prices lower on Friday. December finished $3.00 higher at $281.50. The contract fell by more than three percent on Friday. "We are seeing trade buying today. There has been regular physical offtake," one dealer said.
Dealers said the fundamental backdrop remained bearish because of a huge supply glut of the sweetener, with attention focused on when India would release significant quantities on to the world market.
COCOA DOWN: London cocoa futures finished slightly down with an expected large 2007/08 West African main crop weighing on the market. "There is not much room on the upside unless something happens in terms of fundamental news," one dealer said. "If anything, cocoa futures are more likely to fall due to the coming West African crop." December ended down three pounds at 993 pounds a tonne. Total volume on cocoa was a light 7,527 lots.
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