Arabica coffee futures posted modest gains Friday, although a lull in seasonal activity kept front-month prices within a narrow trading band for the fourth consecutive session, traders said. "The futures market is quiet. Physical business is very quiet," said Hernando de la Roche, senior vice president of Hencorp Coffee Group. "The roasters are buying, but they are putting their orders underneath (the nearby futures contract). Demand is slower for the summer," he added. The front month July arabica contract crept up 0.20 cent to settle at $1.17 a lb on the New York Board of Trade, after trading in a range from $1.1625 to $1.18. It traded between $1.16 and $1.2075 all week.
Among other arabicas, the September contract gained 0.30 cent to end at $1.20 and back month arabicas advanced 0.20 to 0.40 cent.
Meanwhile, a strong Brazilian real against the dollar discouraged producers in the world's biggest coffee exporter from activity, dealers said. On Thursday, the real traded at its loftiest level not seen in three years.
Brazilian producers are also reluctant to lock in prices ahead of the country's winter season and any prospect of frost damage to the new harvest, traders said.
In Central America, tropical storm Adrian was dissipating as it moved over the Honduran mountains, but heavy rain was forecast to continue for another 24 hours, the National Hurricane Center in Miami said.
Traders said they expect little damage to the coffee crop, because many trees were between harvests.
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