December Coffee futures posted sharp losses this morning on speculative selling after yesterday's run-up to 8-month highs failed to hold. Origin selling was seen near yesterday's highs of 135.00, which stopped the bullish momentum in its tracks and caused some moderate speculative selling. Today, however, speculators were running for the exits during European trading hours on the ICE electronic platform. Sell stops were seen being triggered below 130.00 in the December contract, with little roaster buying to stop the declines. Coffee exports out of Brazil have increased this month, with higher prices drawing producers to the market. Support for December Coffee is seen at 126.80, with resistance found at 133.25. December Coffee closed at 128.60, down 4.50.

Another new-all-time high was made in Chicago Wheat futures this afternoon, with the December contract trading as high as $9.17 ¼ for the lead month contract, as talk of further Wheat tenders and continued dry conditions in Australia sent bears running for the exits. Algeria purchased Hard Red Winter Wheat, and traders report Morocco, Jordan, Iraq, and Pakistan as potential buyers in the near future, despite high prices. World Wheat stocks are at multi-decade lows, with little recovery expected out of Australia as drought has ravaged crops again this year.  New all-time highs were reached in Kansas City and Minneapolis Wheat as well. Chicago Wheat futures ended the session up the 30-cent limit in all months through May of 2008. December Wheat closed at $9.17 ¼, up 30 cents.

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