US arabica coffee futures edged higher on Wednesday, settling firm on late speculative buying after a tight-range session that saw roaster buying off the day's lows, traders said.
"In the last few minutes there was some speculative buying, probably related to a little month-end window dressing," one trader said. The NYBOT open-outcry March contract settled 0.40 cent higher at $1.1770 per lb, after trading from $1.1675 to $1.1780 while benchmark May inched 0.20 cent higher to end at $1.1850, in dealings from $1.1740 to $1.1910.
One contracts aside, the rest settled from flat to 0.15 higher. On the ICE New York Board of Trade electronic platform at 1:44 pm EST (1844 GMT), March coffee was down 0.10 cent at $1.1720 a lb while benchmark May fell 0.20 cent at $1.1810.
Electronic trading closes at 3:15 pm. Looking ahead to trade on Thursday, traders saw support for the May contract at $1.1730 and resistance at $1.2000.
NYBOT final coffee futures volume was estimated at light 7,867 lots compared to the 13,177 lots recorded on Tuesday, when 8,408 were traded electronically.
Open interest rose by 56 lots to 128,130 as of February 27. Options volume was heavy, pegged at 10,661 calls against an estimated 3,028 lots in puts.
In London, robusta coffee futures settled lower amid speculative long liquidation and heavy position rolling ahead of Thursday's first notice day, traders said. The LIFFE May contract fell $14 at $1,550 per tonne, after trading in a band from $1,547 and $1,568.
Meanwhile, DTN Meteorlogix said top coffee grower Brazil will see mostly dry conditions or a few light showers, with near to above-normal temperatures, through on Monday.
In retail news, Procter & Gamble Co said on Wednesday it will distribute Dunking' Brands Inc's Dunking' Donuts coffee to US stores.
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