Arabica coffee futures rallied more than 2 percent to extend a three-month high as funds and roasters engaged in follow-through buying on crop worries in top grower Brazil, traders and analysts said.
"There was a mix of spec, fund and trade buying on a continuation of yesterday," one trader said. Some funds covered short positions and some producers sold at the peaks, he said.
On the New York Board of Trade, the most-active December coffee contract settled at 81.65 cents a lb, up 1.95 cents or 2.4 percent, after trading in a 80.85 cents to 82.40 cents trading range.
It was the highest settlement since June 16 when it closed at 83.55 cents. The December delivery has surged almost 5.0 percent since last Tuesday. March 2005 climbed 1.90 cents to 84.45 cents, while longer-dated contracts advanced 1.90 to 2.00 cents.
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