Coffee slips but posts steep weekly gain

Arabica coffee futures on ICE closed easier on profit-taking on Friday, but remained near 13-year highs, underpinned by supply concerns that boosted the market to make the biggest weekly gains in four months. Raw sugar consolidated lower below this week's nine-month peak. Cocoa climbed on light short-covering by investors, with dealers watching top grower Ivory Coast, where elections are due this month.

Dealers said the coffee market had attracted strong fund interest this week as arabica prices rallied to a 13-year high above $2 per lb and robustas hit a 2-year high on Thursday. "The current must-have popularity of agricultural commodities and accompanying fund buying is defying anybody to call a top," Ralph Hawes at Sucden Financial said. Dealers said world coffee production may fall short of expectations if key growers including Colombia and Vietnam revise output figures lower. December arabica coffee broke above the key psychological level of $2.00 a lb on Thursday, peaking at $2.0350 a lb.