Coffee prices fall

Coffee prices fall

LONDON (Reuter): Robusta coffee futures shaved some early
losses after sliding to a new life-of-contract low of US$2,007 a
ton in early trade yesterday but were still easier at midday on
trade and origin selling.

"There was selling from both Indonesia and Vietnam...I think
they are panicking a little," one said.

At midday the front-month January contract was down $54 $2,020
and above a fresh contract low of $2,007 a ton -- the lowest
since July 7.

Traders said the slight recovery was prompted by light scaled-
down industry buying.

But overall, prices have taken a recent hammering from funds
and from follow-through selling after the November contract,
which saw its premium against January soar to $750 a ton, expired
last week.

"We have seen follow-through selling after November
expired..this has added downward pressure to the January/March
structure," said one.