Robusta Coffee Falls as Vietnam Harvest Begins

Dow Jones  -  Neena Rai

  Robusta coffee futures fell in early European trading Tuesday as harvesting

of coffee beans gets fully underway in top producer, Vietnam.

  Dealers also said weakness in New York's arabica market was limiting any

upside.

  At 1110 GMT, January robusta coffee futures fell 0.9% to $1,470 a metric ton.

Last week, the market hit its lowest level of $1,453/ton--the lowest since June

10, 2010.

   "The coffee markets gave the initial appearance of buoyancy, however, both

markets continued to succumb to speculative and origin selling," Toby Donovan,

broker at BGC, said. "...for now perhaps the bulls will have to wait in the

shade until their day in the sun comes," added Mr. Donovan.

   March cocoa futures, meanwhile, fell 0.1% at GBP1694 a ton, as harvesting of

cocoa beans in top grower Ivory Coast and a very large net long position

limited gains, said dealers.

   The market hit a two-year high of GBP1,774 a ton on Oct. 15 as

stronger-than-expected demand for cocoa beans and concerns of a supply deficit

supported the market.

   Sucden Financial brokerage said technically the market continues to track

sideways around the GBP1700 a ton mark, but short-term gains could break above

GBP 1700 a ton.

    December sugar futures nudged 0.6% higher to $488.60 a ton.