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LCE coffee firms,

May premium

crumbles

LONDON: London robusta coffee futures ended higher on trade and roaster support on Tuesday but the spot May premium was dissolving after a build-up in gradings, traders said.

"There is an indication that there is enough coffee around to fulfil the position," said one trader.

The contract slipped $35 on the day to stand at just a $30 premium to the following July position which was $14 up at $1,810.

Traders cited aggressive offers on the May contract after total gradings for the month reached 8,085 lots including 1,599 untenderables by Tuesday.

"It looks like the fireworks are over for now," said the trader. But the rest of the market was underpinned by a mixture of trade and roaster buying after prices touched seven-week lows last week.

Nearby contracts surrendered most of the early gains in the afternoon but picked up again just before the close.

The benchmark July contract moved in a range between $1,796 and $1,819 range.

Turnover on the Exchange totalled a mild 2,388 lots.

Technical analysts pegged support for July at $1,780 and resistance at $1,723.-Reuter