Arabica benchmark coffee futures finished the short week with a tiny rise on Wednesday, though traders said business was quiet and most participants were already gone ahead of the US holiday on Thursday.
"It was a one-cent range and only about 6,200 lots traded. I think it was a pre-holiday day with a lot of people out. Prices backed off both ends, not much interest overall, and not giving any indication of direction," said one coffee dealer.
The NYBOT exchange will be closed for business on both on Thursday and Friday in observance of the US Thanksgiving holiday. Business will resume on Monday. The New York Board of Trade March arabica coffee futures barely firmed at the close, ending up 0.05 cent at $1.2015 a lb.
The range narrowed to a one-cent band between $1.1940 and $1.2040 per lb. December arabica coffee closed up 0.15 cent at $1.1555 a lb. The rest finished from down 0.65 to up 0.05. NYBOT estimated on Wednesday's final arabica volume at puny 6,186 lots, below on Tuesday's 11,521-lot count, and far below on Friday's count of 43,898 lots when selling was heavy.
Traders said locals and small speculators mostly conducted the light business that did take place. One trader said he saw a few small trades executed by roasters and growers.
"A little bit of trade and origin were in trading at both ends, but on very small volume," he said. Given that March coffee prices ended two days in a row exactly in the middle of its recent wide trading band, some traders said they think prices could go either way when players return on Monday.
One trader said he thought the most likely next direction was sideways or down. "I think we'll go down first to test the gap at $1.1490 (a lb on March futures). Then, we'll see what happens from there," said one coffee trader.
On November 3, coffee prices jumped at the open, leaving a price gap on the March chart that remains unfilled and may serve as a target for sellers. The trader added that the downside might be limited, however. In the recent advance to its highest levels since April, some funds took out long positions that they may fight vigorously to protect.
US weather service, Meteorlogix, said it sees dry conditions or a few light showers through on Saturday in Brazil, the world's top coffee grower. London robusta coffee futures closed lower on Wednesday, weakened by fund long liquidation with prices dipping to a six-week low, dealers said. Benchmark January ended down $11 at $1,433 a tonne after slipping to $1,425, a six-week low.
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