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LONDON (Reuters) - Coffee prices fell on Wednesday on futures markets, with speculators looking to sell, against a background of a favorable supply outlook, traders said.
"We have seen speculator selling. I don't think there has been much fund selling but definitely some origin (producer) pressure as well," a trader said.
Expectations of a smaller conillon (bean) harvest in Brazil next season than initially anticipated, due to dry weather, had supported prices on Tuesday. However, large stocks in Europe should cover any potential production deficit.
"It is raining now (over Brazilian conillon areas) but it is very unlikely to improve. The harvest is only going to give out whatever is in the trees," another trader said.
Others said fresh coffee coming from Brazil, Colombia and Vietnam should limit the upside in the short term, with the world's top robusta producer about to enter into the peak of its 2003/04 harvest.
"We have seen speculator selling. I don't think there has been much fund selling but definitely some origin (producer) pressure as well," a trader said.
Expectations of a smaller conillon (bean) harvest in Brazil next season than initially anticipated, due to dry weather, had supported prices on Tuesday. However, large stocks in Europe should cover any potential production deficit.
"It is raining now (over Brazilian conillon areas) but it is very unlikely to improve. The harvest is only going to give out whatever is in the trees," another trader said.
Others said fresh coffee coming from Brazil, Colombia and Vietnam should limit the upside in the short term, with the world's top robusta producer about to enter into the peak of its 2003/04 harvest.
