Coffee Futures Fall a Tad, But Decline Slows -- Market Talk

Robusta coffee futures fall in Europe, although the sharp decline posted in

the previous session has stalled. The Liffe January robusta coffee futures contract is presently

down 0.2% at $1,715/tonne. "The recent rally was ultimately a short squeeze accentuated by low

certified stockpiles and delays from Vietnam, all being compounded by steady premium differentials

and a lack of incentive for bringing coffee to the terminal," says Toby Donovan at BGC Partners LLP.

"Given yesterday's negative action observed in both markets, we ponder the prospect of further

retracements for both. Whilst one-way traffic is rarely the case, we feel a negative bias is

probably fair all being considered on respective flat price."