US arabica coffee futures edged up to a firmer settlement on Wednesday in quiet trading dominated by options selling that kept prices rangebound, traders said. "It's keeping us in and around $1.10 to $1.15. There's been heavy selling of the May options so May volatility's very low," one trader said.
NYBOT estimated 5,254 options calls traded and pegged options put volume at 2,883 lots. NYBOT open-outcry May coffee inched 0.25 cent higher to close at $1.1270 per lb in dealings from $1.1190 to $1.1300 and July gained the same to $1.1550.
The rest rose 0.20 to 0.25 cent. On the ICE New York Board of Trade electronic platform at 1:53 pm EDT (1753 GMT), the May contract was off 0.05 cent at $1.1240 per lb.
July slipped the same to $1.1520 while the rest ranged down 0.25 cent to up 0.90 cent. Speculators and locals played both sides of the market, dealers said. Looking to Thursday, one trader expected to see support for May delivery at $1.1175 and $1.1100 with resistance at $1.1310 and $1.1480.
Volume was estimated by NYBOT at 3,306 lots, compared with the 18,839 lots that traded on Tuesday, when 11,819 contracts traded electronically. Open interest gained 1,664 lots to 151,347 contracts as of March 27. In London, robusta coffee futures finished mostly higher in light volume amid speculative buying and producer selling, dealers said.
Life's May contract settled up $6 at $1,561 per tonne after moving from $1,551 and $1,570. Meanwhile, top coffee growers Brazil will be mostly dry with the chance of some light showers through on Monday, with near to above-normal temperatures, DTN Meteorlogix forecast.
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