US arabica coffee inched its way higher for the third straight session to settle firmer on Thursday as players squared their positions ahead of the quarter's end on Friday, traders said.
"It's the end of the (second) quarter, everyone was protecting their positions," one trader said. NYBOT outcry July coffee settled 0.40 cent firmer at $1.1080 per lb. Key September gained the same to $1.1260 after trading from $1.1370 to $1.1090, which was a six-week low dating back to May 17 on the second-month continuation chart.
Electric dealings, where the bulk of the trades occur, did not touch this low. The rest closed in a range from 0.20 to 0.40 cent lower. On the IntercontinentalExchange New York Board of Trade electronic platform at 1:55 pm EDT (1755 GMT), September coffee was 0.35 cent higher at $1.1255 a lb. The second month fell sharply to a five-week low on Monday and has been slowly clawing its way upward since on Tuesday. Key September contract closed slightly below the 40-day moving average, which sat at $1.1343.
In London, robusta coffee futures finished little changed following a session marked by technical selling and origin sales, dealers said. Liffe September settled $2 higher at $1,869 per tonne after spanning $1,855 to $1,884. NYBOT estimated 3,257 lots traded in New York open-outcry compared to the 4,110 lots officially tallied in floor trade on Wednesday, when 9,802 contracts traded on the ICE screen.
As of June 27, open interest rose 1,270 lots to 153,973 contracts.
Meanwhile in Brazil, the world's biggest coffee grower, the weather will be mostly dry with near to above-normal temperatures through on Monday, DTN Meteorlogix forecast. Overseas, moves by British authorities to possibly publish reports on speculative commodity futures positions will make markets more, boost price efficiency and limit potential for market abuse, according to some analysts.
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