London's robusta coffee market fell almost two percent on Friday as speculators offloaded investments, dealers said. Liffe's second-month November finished $21 lower at $1,115 a tonne on volume of 3,442 lots in a $1,139-1,104 range. Total volume was 3,442 with another 5,110 lots coming from front-month September.
The spot month finished $21 weaker at $1,085. "New York was rallied by the speculators and local traders in initially thin resistance, then origin came in at the highs but London didn't follow," a trader said.
"It looks like speculator type liquidation and may be some disappointed players with long positions getting out before the weekend," he added.
Spread activity and trade Against Actuals accounted for the bulk of the volume.
Traders were awaiting Brazil's third official crop forecast for 2005/06 due after the close of trade on Friday. They said expectations of a lower number were already factored into the market.
COCOA DOWN London cocoa declined on Friday, touching the lowest level in three months after the previous session's drop prompted renewed fund selling, dealers said.
Liffe's second-month December closed down 10 pounds at 805 pounds a tonne after dipping as far as 803 - the weakest price since early May and the lowest price on a second-month continuation basis since July 2004. Volume was 6,699 lots out of a total of 21,167.
Liffe's front-month September concluded 10 pounds down at 782 on volume of 6,898 in a 799-780 range.
Prices fell on Thursday after last week's decline weakened the market's technical outlook and triggered speculative selling. Dealers reported long liquidation and fresh short positions taken by funds.
"There has been fund selling but not as aggressive as yesterday's. There's slightly more orderly buying from industry today," a trader said. He also noted spread activity bulking out volume with trade buying and industry selling on September.
Dealers expected chocolate manufacturers to offer fairly strong support at current levels but couldn't rule out fresh lows next week.
Non-commercial participants may now have a net short position of about 5,000-7,000 lots in London now, according to trader estimates.
SUGAR ENDS UP Trade buying gave a boost to London white sugar futures at the close on Friday as merchants eyed Pakistani and Bangladeshi tenders over the weekend, traders said.
Front month October concluded up $1.90 at $285.90 per tonne in volume of 1,208 lots, after trading from $286.20 to $283.50.
December ended up $2.10 at $278.10 per tonne in volume of 352 lots, having moved from $278.10 to $275.50.
Traders said the trade may have bought positions in anticipation of a tender by the state-run Trading Corporation of Pakistan (TCP) for 50,000 tonnes of white sugar in which offers must be received by Saturday.
They said the trade may also have hedged against a tender by the state-owned Bangladesh Sugar and Food Industries Corporation which has sought bids for 100,000 tonnes of white sugar for September and October shipments. The bids, divided into three groups, will be opened at 0505 GMT on Saturday August 13, August 20 and September 3.