DJ Liffe Softs: Coffee Rise In Half-Hearted Recovery

Liffe coffee futures were higher midday Wednesday in a lackluster recovery from Tuesday’s weakness.

Volume was fairly quiet early on, with traders looking to see what funds decide to do in New York. COFFEE

Liffe robusta coffee volume picks up briefly as both the May and July contracts neared Tuesday’s highs, but then backed off again as neither contract found enough buying interest to push above those levels.

As of midday, both May and July had traded in nearly exactly the same price ranges as Tuesday.

May was up $8 or 0.7% at $1,109/ton with 786 lots traded and July was up $8 at $1,125/ton with 1,326 lots moved, as of 1042 GMT.

Dow Jones in Asia reports that producers and exporters in Vietnam have been more panicked sellers recently due to the continued weakness in the futures market.

Wet weather has raised concerns over coffee quality in storage in Vietnam, increasing sales. But rain has also slowed harvesting and bean transportation in Indonesia.

-By Lisa Kallal; Dow Jones Newswires; (4420) 7842 9415; lisa.kallal@dowjones.com

(END) Dow Jones Newswires
04-05-06 0705ET