Arabica coffee futures closed at a two-and-a-half month low for the third straight day Friday, on pressure from the strong dollar and a weak technical picture, traders said. Arabica coffee futures for benchmark March delivery dropped 1.25 cents to close at $1.3170 per lb, the weakest finish for the front-month contract since November 13, 2009, for the third straight day. Session range from $1.3160 to $1.3390.

March volume reached 10,096 lots, by 1:53 pm EST (1853 GMT). Arabica coffee futures reversed lower, after feeling an early bounce, in conditions viewed by some as oversold on pressure from the strong US dollar and weak technical indicators - traders.

The dollar rose against major currencies after a slew of stronger-than-expected data boosted the view the US economy was recovering faster than other developed countries. The market continued lower as some automatic sell orders were triggered - traders. The 2010 coffee harvest in world top grower Brazil is developing unevenly as a result of unusually heavy rain but measures to avert a resulting dip in quality are not economically viable - producers.

Copyright Reuters, 2010