Robusta Edges Higher But Stays Near Lows On Harvest Pressure

DJones -  Neena Rai

  Robusta coffee futures edged higher in early European trading Monday, but

within sight of the market's recent more than three-year low hit last week, as

harvest pressure from top grower Vietnam pushed the market lower.

  At 1110 GMT, January robusta coffee futures traded 0.5% higher at $1,496 a

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

lowest since June 10, 2010.

  Meanwhile, Liffe cocoa futures for March delivery fell 0.4% to 1,695 pounds

($2,698.49) a ton as harvest pressure from West Africa pressured prices lower.

  "Cocoa futures closed lower for the [last] week as improving prospects of

cocoa crops in Ivory Coast, top grower of cocoa, due to favourable weather

conditions helped to outweigh concerns regarding optimistic demand and

continued global deficit of cocoa," said Phillip Futures.

  "If there is no major change in the weather in Ivory Coast and weather

conditions continue to be favourable, we may continue to see further downside

to cocoa prices," added the brokerage.

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

stronger-than-expected demand for the chocolate-making ingredient and concerns

of a supply deficit supported the market.

  European Union wheat futures for November delivery fell 0.2% to 207.25 euros

($279.49) a ton, extending losses from the prior session's close.

  "Mounting summer crop harvest progress in the U.S. (and better than expected

yields), combined with much needed rainfall in Argentina, reduced Indian wheat

export prices and slowing U.S. wheat disposals weighed on grain and oilseed

prices over the week," Luke Mathews analyst at Commonwealth Bank of Australia

said. Dealers said the U.S. Department of Agriculture November WASDE report

this Friday will give further price direction.

  December sugar futures were broadly steady and edged higher 0.3% to $482.70 a

ton.