US open-outcry arabica coffee edged up to close mildly higher on Monday, on late-day slipover support from the London robusta market, traders said. "It looked like London coffee led the way. No cold weather (in Brazil), so I think you had some selling that pushed it down," one trader said, noting light origin selling and passive scale-down buying by funds.
The New York Board of Trade open-outcry benchmark September inched up 0.25 cent to settle at $1.1295 a lb., after trades spanned from $1.116 to $1.1325. The rest ranged from 0.25 to 0.45 cent higher. On the ICE NYBOT electronic platform at 1:43 pm EDT (1743 GMT), September coffee was 0.25 cent higher at $1.1295 a lbw, moving from $1.117 to $1.1345.
London robusta coffee futures closed higher on late-day support from industry and options-related buying and speculative short covering with the benchmark September contract ending up $42 at $1,827. Meanwhile, in the No 1 coffee producer, cold air has settled over Brazil's coffee belt after a few days of rain. But no frost is seen and temperatures should start rising slowly over the week, private meteorologists Sombre said on Monday.
Temperatures dropped to some of their lowest levels this winter in Brazil's south-east, with the main coffee growing regions of Minas Gears state falling to 3-4 degrees Celsius (37-39 Fahrenheit) at dawn on Monday, Sombre data showed.
Final estimated open-outcry coffee volume on Monday reached 3,847 lots, with traders estimating nearly 12,000 had traded on the ICE screen by 1:10 pm. This compares to the 3,520 contracts that traded in the pit on Friday while 13,060 traded on the screen, NYBOT said. In related news, coffee speculators went from a net short of 5,010 lots to a net long of 1,160, in the week to July 24, a weekly Commodity Futures Trading Commission (CFTC) report released on Friday.
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