COFFEE PRICES MOVE HIGHER ON HOPES FOR RENEWED TALKS

COFFEE PRICES MOVE HIGHER ON HOPES FOR RENEWED TALKS

Coffee prices on New York and London futures exchanges were higher Monday on last Friday's news that the Brazilian Coffee Council, the organization representing most Brazilian coffee growers, had voted for talks aimed at re- establishing export quotas under a new Internatonal Coffee Agreement.

Prices were up 250 points to 70.90 cents a pound late Monday although some traders indicated disappointment that gains were not greater in light of the news.Some traders were on the sidelines awaiting a decision by the Brazilian Coffee Exporters Federation on supporting a new global agreement. The exporters meet today to discuss the possibility, dealers said.

The exporter group's president, Osvaldo Aranha has said his organization is philosophically opposed to quotas. On Friday, the market rallied sharply after the Brazilian Coffee Council of Brazil's 320,000 coffee growers, voted for talks aimed at a return to quotas. Many traders remained cautiously optimistic about the prospects of a new global coffee agreement with the support of Brazil. A new pact would boost prices, which have traded in the high 60-cent- range to slightly over 70 cents a pound in recent weeks.

Traders said the Brazilian Coffee Exporter Federation (Febec) was scheduled to meet today to discuss the possibility of supporting an ICA. "The exporters have always been against quotas," a trader said. "So it will be interesting to see what they say, " he said.

Traders said they expected the market to remain somewhat apprehensive until the next ICO council meeting, April 6-10. "There is still a degree of nervousness on what they (the Brazilians) might do and will do," another trader said. "This will go on until the next ICO meeting."

Meanwhile, cocoa futures prices were down on commission house selling and a lack of fresh fundamental news. The market "just doesn't want to go up," a trader commented. New York cocoa futures were off $13 a metric ton to trade at $1,039 at 1:20 p.m., Eastern Standard Time Monday.

Prices for cocoa in the cash market were quiet with no sigh of the Ivorian Caisse de Stabilization's presence (the marketing body). Last week, cocoa prices were supported by speculation that the Caistab had been in the market selling, although no traders could confirm it.

In the world sugar market, prices for the New York No. 11 contract edged higher during the session on trade buying, associated with short covering. Although most in the market expect prices to move lower, traders said they wanted to see a rally before players began to take short positions.

"There have been bits and pieces of trade buying," a dealer said, "but nothing out of the ordinary."

Talk that Russia might buy sugar is helping to underpin the market. "But no one has heard anything definite," another trader said.