CSCE coffee futures settled higher Wednesday on heavy speculative buying by funds, although stiff producer sales sharply pared the market's rally, brokers said.
July arabica soared 2.35 cents to close at 80.15 cents a lb, ranging between 78.30 and 82.15 cents. On a spot basis, it was the highest close for coffee in about six months.
September added 2.30 cents to 82.25 cents. Except for one contract, distant months rose 2.20 cents.
Mike McDougall, senior vice president of FIMAT USA Inc., said heavy fund buying combined with some tightness in coffee availability in leading producer Brazil to power the rally.
Technicians said resistance in the July arabica contract will still be at 81.40/50 cents, while support was pegged at 78.30 cents and in layers down to 75 cents.
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