London Coffee Market Due For Bounce

Coffee futures prices in London are due for a bounce later on Wednesday after diving 8.5 per cent over the past two days, but any rise will be limited if origin selling from Vietnam comes into the market, dealers said.

A selling spree in the London robusta market saw the most active January contract shedding US$128 in two days to end on Tuesday at $1,458 a tonne.

"It's probably overdone a bit. But any bounce will be limited because you've got Vietnam coming on stream," a senior European coffee dealer said. "I'll be surprised if it continues down from here."

 

Traders forecast the January contract would rise by $10-$20 when the market opens later on Wednesday. (Reuters)