Robusta Coffee Slides Sharply in Europe -- Market Talk

  1202 GMT [Dow Jones] Liffe's September contract is down some 3.3% at $1,739/tonne amid a slump

that has seen recent gains come to a sudden halt. Robusta prices are likely taking the lead from

moves in the Arabica market. "Arabica prices reversed sharply as profit taking cascaded into stops

and sent the market sharply lower," notes Sterling Smith, vice president and Citi Futures and OTC

Clearing. "The situation surrounding the coffee market has not changed, and this is quite typical of

how coffee trades when prices are on the move, and more of this sort of behavior should be expected.

Breaks should be well supported," he adds, referencing bad weather problems in producing regions

that continue to keep prices cushioned.