London coffee futures climb

11 Feb, 2004

London robusta coffee futures climbed on Tuesday, supported by modest industry buying and speculative interest in a market that also registered fresh - but limited - spread business on the front-month contracts, dealers said.
Stronger arabica prices in New York and an ongoing lack of origin sales also helped to boost sentiment, they added.
Benchmark March closed $12 higher at $743 a tonne on 2,572 lots out of total turnover of 8,830 lots after trading a $747-$732 range and breaking nearby resistance of $740 a tonne.
Second month May gained $12 to $764 on 5,253 lots.
"It's been a fairly constructive day on coffee," a trader said.
"After the losses we've had in the last few weeks, it looks like we're undergoing a little bit of a correction, although I suppose that at this stage these gains are nothing to get too excited about."
But other dealers said selling interest by funds would probably limit any future gains, keeping the market on the back foot for some weeks to come.

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