ICE arabica coffee futures closed higher on Thursday, as the strong Life robusta market dragged prices higher and December/March spreading significantly boosted volume, traders said.
"It seemed like it got up quickly but ran into resistance around that $1.24 area. There were specs doing some technical buying, then you have some origin selling against it," one trader said, about the December contract. The ICE benchmark December arabica contract trading in the pit closed up 1.25 cents at $1.2260 per lb.
The rest ranged from 1.20 to 2.40 cents stronger. On the electronic platform, the December contract was up 1.15 cent at $1.2250 a lb. at 2:01 pm EDT (1801 GMT), in a trading range from $1.2140 to $1.2390. Robusta coffee futures trading on the London market closed sharply higher on concern about a supply squeeze for the spot month.
The Life November contract settled up 4.2 percent, or $98 at $2,373 per tonne, after touching a lifetime high at $2,394. Benchmark January finished up $51 at $1,954, just off its fresh contract high at $1,958. In top grower Brazil there will be near-daily episodes of scattered showers and thunderstorms through on Wednesday, with 0.5 to 1.5 inches of rain expected on Saturday, DTN Meteorlogix said.
Brazil's coffee belt closed out October ending a prolonged dry spell and setting off widespread flowering, but some productive areas still need rain, private meteorologist Somar said on Thursday. The ICE robusta coffee futures had not traded by 1:58 pm ICE Futures electronic trade ends at 3:15 pm.
ICE estimated final open-outcry volume at 6,058 lots, with traders pegging electronic volume at nearly 19,300 lots by 1:15 pm. This compares to the 3,482 lots that traded on the floor on Wednesday when 12,743 lots traded on the screen. Options, ICE pegged calls volume at 4,343 lots and puts at 2,875 lots. Open interest climbed by 1,294 lots to 169,660 as of October 31, exchange data showed.
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