Arabica coffee futures ended down on Wednesday, snapping a three-day winning streak as speculators liquidated following attempt to extend the rally, traders and analysts said. The New York Board of Trade's benchmark March arabica contract lost 0.90 cent to settle at 104.90 cents a lb after dealing from 104.80 cents to a one-month peak 106.70 cents. May, the next active futures contract, slid the same to 107.30 cents and more distant months finished down 0.75 to 0.90 cent.

"The market tried to have follow-through buying after the it never did. Late in the session some short-term guys just liquidated," said Rodrigo Costa, an analyst with Fiat USA.

Traders said market players focused on spread trading between the two front contracts ahead of March delivery's first notice day on February 17.

"There was some rolling forward going on with the funds," said a trader with a large coffee buyer. "First notice day is looming, and we are figuring about 32,000 lots of fund open interest still so they have a fair amount to do."

On Tuesday, open interest in March fell 2,422 lots to 64,090 contracts, while may rose 2,388 lots to 27,776 contracts. Estimated trading volume amounted to 16,021 contracts, down from Tuesday's tally of 19,948 lots.

Technically, traders put support for front-month March at 103.50 and then 101.50 cents, with resistance at 106.70 and 108.10 cents. Meanwhile, London benchmark March robusta contract rose $15 to close at $781 a tonne on fund and speculative buying amid limited producer selling.

Copyright Reuters, 2005