CSCE coffee futures finished the final trading day of the year higher on Wednesday with a last-minute spike sparked by buy stops in a quiet conditions, dealers said.
"Buy stops were found above 64.60 on March as one broker in the ring bid 64.60 cents for 500 contracts," said one commission house broker. The high was posted at 65.00.
Active March arabica coffee closed up 1.30 cents at 64.95 cents a lb, within a 63.05-65 cents trading range. May coffee also firmed 1.30 cents to 66.85 cents and the back months ended 1.15 to 1.30 cents higher.
One trader said with little fundamental news during this holiday period the coffee market is more susceptible to speculative buying and selling.
"I think a few people on the floor were looking for those end of month market on close buy orders, except they never materialised," said another broker.
Coffee futures trading in New York will be closed on Thursday and Friday for the New Year's holiday. Trading will resume on Monday.
Looking ahead to 2004, traders felt bean prices could go in either direction.
"Look at a weekly continuation chart. The market closed almost exactly in middle of the year's range of 55.30 to 73.50 cents." said one commission house broker.
Estimated volume slowed to 3,079 lots Wednesday, down from the 4,248 contract pace on Tuesday.
In the adjacent options pit there were 1,237 called traded and 309 puts.
Coffee futures had a short-covering rally in early December as funds were caught holding too large of a bearish bet, but they have reduced their short exposure.
Technical analysts pegged support on March at 63.05 cents followed by 62.85 cents with resistance at 65.20 cents followed by 65.90 cents.
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