Arabica coffee futures eased Friday in thin trading, extending the previous day's losses on a still-strong dollar and favourable crop weather in top coffee grower Brazil, market sources said. The New York Board of Trade's benchmark July arabica contract eased 1 cent or 0.8 percent to settle at $1.2150 a lb after dealing in a narrow range of $1.2110 to $1.2290. "Part of the liquidation is spec selling and a strong dollar," said James Cordier, president of Liberty Trading Group. "We are entering freeze season for southern Brazil. For those people who like to buy waiting for cold fronts, there aren't any. It's very dry and mild in Brazil right now." Brazil's arabica harvest starts around June, when winter brings cool weather to the South American country.
For now, however, Brazil will see mostly dry weather and above-normal temperatures during the next seven days, private forecaster Meteorlogix predicted Friday.
Meanwhile, recent US data suggesting the economy is on a strong footing boosted the US currency to a seven-month high against the euro today, putting pressure on many dollar-denominated commodities.
Among other arabica futures, September likewise dipped 1 cent to finish at $1.2440 and the rest retreated 0.85 to 0.95 cent.
NYBOT final estimated trading volume in arabica futures reached 5,745 lots, well below the official 10,277 lots of the previous session.
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