US arabica coffee futures settled down in a quiet session on Wednesday after bearish speculators took advantage of a lack of roaster buying, traders said. "We traded in a small range for the majority of the day," one trader said, adding that the bulk of volume was dominated by speculators and independent floor traders at the exchange.
"I didn't see any interest from the roasters," he added. The New York Board Of Trades most-active September contract dipped 1.05 cents to settle at $1.0645 a lb., after trading from $1.06 to $1.0825. Front-month July coffee eased 1.20 cents to $1.0310 a lb., while longer-dated arabicas slipped 1.05 to 1.10 cents. Arabica prices got boost from some speculators buying on the heels of a weather forecast for heavy rainshowers and cooler weather in top grower Brazil late next week.
Market players generally take bullish positions on any signs of frost in Brazil, which could harm the crop. Yet, one trader said the forecast was too far out to take to heart.
There are "no significant concerns" for Brazil's coffee harvest next week, although a long range forecast shows heavy storms and cooler weather in Brazil's coffee belt late next week, according to US forecaster Meteorlogix.
"Long range charts suggest we may need to keep an eye on the region for late next week or next weekend," it said.
NYBOT estimated trading volume of arabica futures reached just 7,118 contracts, down from the official tally of 11,323 lots the previous session.
On the charts, one trader pegged technical support in September arabica at $1.0555, and then $1.0465, with resistance at $1.0780, and then $1.0915.
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