US arabica coffee futures jumped to close at a one-month high on Thursday on follow-through buying interest from Wednesday's firm trade, though origin selling capped gains, traders said. "We were seeing fund short-covering with spec and trade buying. We did see a lot of Brazilian and other origin fixations," one trader said.
NYBOT open-outcry benchmark July coffee surged 3.1 percent or 3.40 cents to close at $1.1310 a lb., near the session high and its highest close since April 18. Trades ranged from $1.0990 to $1.1330. September futures surged the same to settle at $1.1590 a lb. while the rest closed up from 3.10 to 3.40 cents.
Private meteorologist Sombre said on Thursday a cold snap forecast for the end of next week would hit Brazilian farms mainly in northern Paranoia and the extreme south of Sao Paulo state, but the risk of a coffee frost faded.
On Wednesday's rally was in reaction to the previous forecast that stated the risk of frost. DTN Meteorlogix forecast on Thursday that Brazil will see mostly dry conditions or a few light showers amid warm temperatures through on Tuesday.
On the ICE New York Board of Trade electronic platform at 2:02 pm, July coffee was up 3.30 cents at $1.1300 a lb. Key resistance was seen at $1.1450. Electronic volume at about 1:10 pm EDT was at a large 19,187 lots, traders said. NYBOT estimated 6,884 lots traded in New York open-outcry, compared with 23,058 lots on Wednesday.
The call option tally came to 12,904 lots with puts seen at 12,352 lots. Robust coffee futures in London set fresh eight-year highs, helped by a tight supply outlook and the rising New York arabica market, dealers said.
Life's benchmark July coffee ended up $26 at $1,718 a tonne, with trades spanning from $1,692 to $1,718. In related news, Guatemala's 06/07-coffee crop will end 9.1 percent higher than a previous estimate at 3.6 million 60-kg bags, coffee grower's association UNICEF said on Thursday.
Meanwhile, Nicaragua's coffee export slipped 33.5 percent in April over the year-ago period to 121,803 60-kg bags, national export agency Centrex said on Thursday.
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