US arabica coffee settled higher on Wednesday, on chart-based buying after probing a gap lower on pressure from the robusta market on Tuesday, traders said. "We just had a technical bounce after coming close to filling that downside gap yesterday. Overall fundamentals are still bearish with the seven-day forecast calling for no kind of frost threat in Brazil," one trader said.
Harvest is underway in Brazil, the world's top coffee grower. NYBOT open-outcry July coffee ended 1.15 cents higher at $1.1460 a lb., with trades ranging from $1.1280 to $1.1490.
Benchmark September futures rose 1.05 cents to close at $1.1740 a lb, moving from $1.1570 to $1.1760. The rest ended from 1.05 to 1.95 cents stronger. On the ICE New York Board of Trade electronic platform at 1:44 pm, September coffee was 0.55 cent higher at $1.1690 a lb. In London, robusta coffee futures finished firm after recent profit taking dried up and the market bounced back toward the nine-year peak, dealers said.
The Liffe September coffee ended $20 higher at the session high $1,900, after trading as low as $1,845. Position rolling out of July into September ahead of the front month's June 21 first notice day, continued to boost NYBOT volume, dealers said.
NYBOT estimated heavy 11,495 lots traded in New York open-outcry around noon, compared to the 9,721 lots officially tallied in pit trade on Tuesday, when 26,858 traded on the ICE electronic platform.
As of June 12, open interest rose 921 lots to 161,803 contracts. On the weather front in Brazil, mostly dry conditions and near to above-normal temperatures were forecast through on Monday, DTN Meteorlogix said. In related news, Mexico's accumulated coffee exports for the 2006/07 harvest rose to 1.868 million 60-kg bags to May, up 23.8 percent from the same period a year, the government said on Wednesday.
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