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  • Oct 27th, 2005
  • Comments Off on New York coffee futures firm in range-bound trading
US coffee futures firmed on Tuesday, although prices were stuck within a week-long trading pattern as market players held back and waited for new directional signals, traders said.

The New York Board of Trade's active December arabica contract rose 0.55 cent to settle at $1.0370 a lb, after trading from $1.0260 to $1.0525.

The trading range was within the December contract's price range over the past five days, from $1.0255 to $1.0680.

"It's a little consolidation. The longer this market stays within the range of last week, the greater the move when we break out," said a trader.

Among other arabicas, March advanced 0.50 cent to end at $1.0675 a lb, while back month contracts gained 0.55 to 1.05 cents a lb.

NYBOT coffee futures trading volume reached an estimated 9,539 lots, slightly higher from Monday's official tally of 8,424 contracts.

Meanwhile, United States forecaster Meteorlogix predicted dry conditions or just a few light showers to sprinkle the growing areas in top coffee producer Brazil through Friday, followed by scattered showers from Saturday through Monday.

Rains are welcome in Brazil following a recent patch of dry and hot conditions which have reduced soil moisture and increased stress on the flowering trees.

"A lot of people are keeping an eye on the rainfall in Brazil. Forecasts are showing rainfall should pick-up but I think people are taking a wait-and-see approach," said a trader.

Copyright Reuters, 2005


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