US coffee futures jumped more than 2 percent on Wednesday, with roaster buying triggering a flurry of speculative fund short-covering, traders said.
"We had roaster buying today," a trader said.
"Once we got above unchanged on the day, the funds covered shorts and started a rally," he said. On the New York Board of Trade, the most-active December arabica coffee contract rose 1.70 cent, or 2.3 percent, to settle at 74.65 cents a pound, the highest close since October 11.
The December contract bounced from a session low 71.90 cents to as high as 75.75 cents. March 2005 jumped 1.50 cent to 77.65 cents, while longer-dated contracts rose 0.70 cent to 1.35 cent.
One analyst said he scratched his head as he watched New York price surge and robusta futures in London plummet to a level not seen for a front-month position since September 2002.
London's November coffee settled down 3.6 percent at $562 a tonne, just $2 shy of the day's low.
Speculative funds sold in the session, until roasters became more aggressive buyers.
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