Robusta Coffee Slips on Vietnam Harvest Pressure

Neena Rai

  LONDON - Robusta coffee futures slipped in early European trading as harvest

pressure from top producer Vietnam pressured prices.

  January robusta coffee futures traded 0.5% lower at $1,577 a metric ton,

having broken below $1,600 in the previous session.

  Sterling Smith, futures specialist at Citi, said Vietnam's new harvest

continues to come online.

  "Vietnamese prices continue to slide, which only further adds to the

robusta's weakness," Mr. Smith said. "We haven't seen any signs of bottoming

action in either robusta or arabica and both markets look ready for further

decline."

  Meanwhile, March cocoa futures were flat at GBP1,728 a ton.

  "Although the North American cocoa grind came in within expectations, it

seems the data wasn't bullish enough to kick in that next bit of speculator

buying," said a London-based dealer.

  Cocoa grindings, which are seen as a barometer of demand by some traders,

rose to the highest amount for North America in the third quarter since at

least 2001, and showed an increase of 8.3% year-on-year, the Washington-based

National Confectioners Association said last week. Grindings in Asia rose 12.1%

in the third quarter, while Europe's rose 4.7% in the period.

  Elsewhere, sugar futures for December delivery were flat at $511.80 a ton.

  The market soared as much as 6% higher Friday on news that a fire destroyed

sugar stockpiles and damaged infrastructure at Copersucar's terminal in the

Brazilian port of Santos.

  "My stance is the sugar market will need fresh supply news to rationalize

higher trade and even current trade," Matt Bradbard, vice president of Managed

Futures & Alternatives at RCM asset management said. "Let me be clear, I remain

bullish but think the market has gotten ahead of itself."

  European Union wheat futures slipped 0.1% to EUR204.50 a ton, as the market

took a breather from a recent rally on crop concerns in Argentina and the Black

Sea region.

  European wheat futures hit their highest level in four-and-a-half months

Monday of EUR206.50 a ton.