US arabica coffee futures closed lower on Monday, with long liquidation by funds triggering small sell-stops while some buying entered and prevented deeper losses, traders said. "Roasters had interest in the lows," one dealer said, adding funds were also light buyers.
NYBoT's benchmark March contract, which traded in open outcry, slipped 1.75 cents to $1.1660 per lb, after trading in a range from $1.1610 to $1.1835. May dropped 1.65 cents at $1.1975, in a trading band from $1.1925 to $1.2130 while the rest closed down 1.65 to 1.70.
"You're going to see continued long liquidation out of funds. Everything they liquidate is pretty much profit-taking for them," one trader said. The IntercontinentalExchange's NYBoT electronic futures contracts were lower at 1:58 pm (1858 GMT). The March coffee futures contract, which settled at $1.1835 on Friday, was down 1.60 cents at $1.1675 per lb while May was down 1.50 cents at $1.1990.
Final volume for open outcry coffee was estimated by NYBoT at 14,671 lots, down from the 18,302 officially tallied on Friday, when open interest rose by 2,988 to 136,232 lots. NYBoT estimated an additional 4,059 lots had traded electronically shortly after the pit-session closed.
NYBoT estimated open-outcry options calls volume on Monday at 7,909 and puts at 5,047. In London, robusta coffee futures settled firm in a quiet session mainly dominated by speculative spread trading, dealers said.
Liffe's spot March contract climbed $5 per tonne at $1,600 per tonne, trading in a range from $1,588 to $1,603. May gained $10 to $1,599, in dealings from $1,583 to $1,602 while the rest settled from $11 to $14 higher. In related news, Tanzania's coffee prices eased at last week's auction, undermined by lower bean quality, traders said on Monday.
The Tanzania Coffee Board (TCB) said 26,440 60-kg bags were offered for sale, with 23,005 sold. At the previous auction, 31,756 60-kg bags were offered and 26,730 bags sold.
Meanwhile, DTN Meteorlogix said the world's biggest coffee grower Brazil will see scattered showers and thundershowers through Saturday while temperatures were forecast slightly below normal.
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