New York coffee jumps; cocoa and sugar drop

01 Sep, 2010

Arabica coffee futures jumped to close up 1.4 percent on Monday, on thin fund buying while producers waited for higher prices. US cocoa traded quietly to settle at the lowest level in more than a year and raw sugar finished easier.
The October raw sugar contract dipped 0.15 cent or 0.8 percent to settle at 19.81 cents per lb. Contract traded from 19.50 to 20.14 cents. It was an inside day since the range was within Friday's 19.26 to 20.32 cents band. Traders said the inability of the market to extend higher prompted technical liquidation in sugar. Arabica coffee futures for December jumped 2.55 cents or 1.4 percent to close at $1.8140 a lb.
Fund buying uncontested by origin selling pushed market higher in quiet dealings, said traders. December contract climbed closer to last week's 13-year high at $1.8865 per lb. Benchmark December cocoa inched down $4 to finish at $2,714 a tonne, the weakest settlement since July 2009.

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