Large volumes of coffee traded this week as higher prices encouraged producer selling and roasters and exporters covered their nearby needs, traders said Friday. Despite some end-of-week profit-taking, benchmark New York arabica futures prices have risen considerably for the past fortnight on fund buying, concern about a smaller Brazilian crop in 2005 and shortage of fine quality coffee.
"Some good volume was done this week. Roasters couldn't wait any longer and have been putting some quantities into their books," said a Rio de Janerio-based exporter, adding that next week could be quieter due to a public holiday on Monday.
Swedish quality arabicas traded this week at between 14 and 15 cents under New York futures for Dec/Feb 2005 shipment and some Jan/June sales were done at similar levels.
Roasters gave up hopes that discounts would widen to levels of nearly 20 cents under seen in March, traders said.
"Quite a bit of business was done, especially on the internal market. Producers have been selling more," said Bruno Angst of Santos-based exporter Comexim.
Fine quality south Minas arabicas were quoted at 245/250 reais per 60-kg bag, up 25 reais from the previous week.
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