Robusta Coffee Firms on Near-Term Tight Supplies; Cocoa Slips

Neena Rai

  LONDON - Robusta coffee futures firmed in early European trading Monday, as

fears surrounding near-term supplies of beans weighed on the market, while

cocoa futures pulled back slightly from the more than two-year high posted in

the prior trading session.

  At 0953 GMT, November robusta coffee futures traded 0.4% higher at $1,740 a

metric ton, after the market hit a morning high of $1,746 a ton. Dealers said

that NYSE Liffe certified robusta stocks data is due to be released Thursday

and will give further direction to market prices.

  December cocoa prices traded 0.2% lower at GBP1,775 a ton, as the market

eased from its high. Traders said U.S. cocoa grind data due later this week is

expected to confirm firm demand for the chocolate-making ingredient.

  Phillip Futures expects grindings data to increase by 6%-10%.

  "We might also expect physical demand for cocoa to increase as we approach

the end-of-the-year festivities," Phillip Futures said. "Therefore, we remain

bullish on cocoa."

  December Liffe sugar futures slipped 0.2% to $505.50 a ton, while European

Union wheat futures were flat for November delivery.

  "Cereals prices remain stable, on the one hand pressured by large volumes

available with the corn harvest, and on the other hand, pushed by a strong

demand in the international market," said risk manager Agritel.

  Morocco issued a tender for 330 000 tons, looking to source European wheat,

while Syria also needs to import large volumes because of the civil conflict,

Agritel said.