Arabica coffee futures on ICE were little changed and hovering above a seven-year low on Friday, as the bear market remained pressured by favourable crop development in South America and the $1 per lb level provided strong psychological support. December arabica coffee futures on ICE edged down 0.25 cent, or 0.2 percent, to $1.0370 per lb by 12:40 pm EST (1740 GMT), consolidating after the market plummeted to $1.0095 on Thursday, the front month's lowest level since October 2006.
December options will expire at the end of the session. "We have a good flowering season in Brazil, and Colombia is also doing pretty well even after last year's roya," said Karim Cherif, analyst at Credit Suisse, referring to a crop fungus outbreak. Arabica prices have fallen almost 10 percent in the past month, trading well below their peak of over $3 per lb hit in May 2011, which the International Coffee Organisation (ICO) said could present buoy prices in the longer term.
The ICO maintained its 2012/13 global production forecast at 145.2 million 60-kg bags but said it was too early to give a forecast for 2013/14. Liffe January robustas were up $16, or 1.1 percent, at $1,476 a tonne. ICE March cocoa futures eased $18, or 0.6 percent, to $2,676 a tonne, with market fundamentals supporting prices, as a second consecutive global deficit is expected.
Total open interest tumbled by 9,388 lots, or 4.2 percent, to 214,73 lots on Thursday, with the day's volume heavy at 63,630 lots, exchange data showed, indicating heavy long liquidation as the market tumbled 3 percent. March cocoa on Liffe lost 4 pounds, or 0.2 percent, to settle at 1,708 pounds a tonne. ICE March raw sugar futures rose 0.04 cent, or 0.2 percent, to 18.09 cents a lb, just above Thursday's five week low of 17.93 cents, as the market eyed strong Asian exports. Total open interest dropped by 6,574 lots to 806,430 lots on November 7, when volume jumped to 111,939 lots, the highest since October 21, exchange data showed. December white sugar on Liffe edged up 40 cents, or 0.08 percent, to $475.50 a tonne.
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