US arabica coffee futures settled mixed, with market players fixated on spread trading between the nearest monthly contracts amid a dearth of directional signals, traders and analysts said. The bellwether July arabica contract eased 0.30 cent to settle at $1.1805 a lb. on the New York Board of Trade, after trading from $1.1750 to $1.20. It was the lowest closing price since May 20. September likewise dipped 0.30 cent to finish at $1.2125 a lb. Longer-dated arabica futures ended down 0.20 to up 1.60 cents.
"Spreads have been very active, and that is where most of the volume was today," said Boyd Cruel, senior softie's analyst at Alaron Trading. "We are approaching the Brazilian winter, with the potential for a freeze.
But at the same time the upside is limited by the fact that there really isn't any forecast for cold temperatures, so the market is just stuck here," he added.
US forecaster Meteorlogix predicted mostly dries conditions and temperatures near to above normal in top coffee producer Brazil's main growing region during the next seven days.
"There is no damaging cold weather in sight," it said in its daily weather outlook. Estimated NYBOT arabica futures trading volume fetched 14,597 lots, below on Tuesday's official tally of 17,421 lots.
On the charts, traders see major technical support in NYBOT July arabica at $1.16, with resistance at $1.2050, and then $1.25.
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