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London cocoa futures closed little changed on Wednesday, stuck in a recent range as market players awaited fresh impetus from New York. Traders said the higher than usual volume of 22,061 lots was attributable to trade Against Actuals on the two front-month positions. Liffe's front-month March lost three pounds to settle at 859 pounds per tonne in volume of 10,695 lots. It traded between 851 and 862, within the 840-866 range seen since Thursday.

"The only thing that might shake the market is if New York starts hurdling the higher technical and resistance levels. This might encourage new speculative buying - but seeing as New York is slipping back a bit, it's not looking too bubbly," a trader said.

Second-month May fell two pounds to settle at 871 on volume of 10,239 lots.

COFFEE ENDS UP, LINGERS BELOW TWO-YEAR HIGH: London robusta coffee futures closed a touch higher on Wednesday, still hovering below a recent two-year peak on interest from large speculative funds, dealers said.

Liffe's benchmark May position finished at $863 a tonne, up $4, on turnover of 5,833 lots. Last week's peak was $872, the loftiest price since February 12, 2003.

Wednesday's session mainly focused on speculative and trade activity as the market waited for signs of an end to the recent bull run or an indication that fund buying could still push prices to new highs, dealers said

The New York Board of Trade's most-active May arabica lost 1.2 cents to $1.194 a lb as participants banked profits following a fresh five-year contract high of $1.215.

Overall Liffe volume stood at 11,504 lots. Front-month March gained $4 to end at $835 after shifting 3,209 lots.

Coffee exports from Colombia, Mexico, Central America, Peru and the Dominican Republic rose 7.3 percent in January to 2.27 million 60-kg bags, Guatemalan grower group Anacafe said on Wednesday.

Copyright Reuters, 2005


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