US arabica coffee closed down on Thursday but up from a fresh seven-week low pressured by local and speculative selling that triggered light fund sell-stops, traders said. "The market technically doesn't look good. Almost every week, we make a new low. There's not much buying around," one trader said, adding that light buying interest came from commercials and speculators.
The pit was shut on Wednesday for US Independence Day. New York Board of Trade open-outcry benchmark September settled down 0.70 cent at $1.1040 per lb. after trading from $1.1120 to $1.0980 which marked a low dating back to May 16 for the second-month position.
The rest retreated from 0.75 to 0.90 cent. The second month has slipped 9 percent since its highest trade June 4 to its lowest on Thursday, as the Brazilian harvest got underway. On the IntercontinentalExchange NYBOT electronic platform at 1:53 pm, September coffee was down 0.75 cent at $1.1035. In London, robusta futures ended mostly higher as the market continued to consolidate after its recent rise to a nine-year high.
Liffe September settled up $6 at $1,915 per tonne after trading $1,899 to $1,929. On Wednesday, German analyst FO Licht forecast global coffee output at 120.0 million bags of green beans in 2007/08, down from 131.1 million bags in 2006/07. Licht estimated total coffee production in 2005/06 at 111.0 million bags of green beans.
NYBOT estimated 3,109 lots traded around noon in New York open-outcry while traders estimated 10,500 had traded on the ICE platform by 1:10 pm. This compares to the 4,733 lots officially tallied in floor trade on Tuesday, when 13,100 contracts traded on the ICE screen. As of July 4, open interest increased 1,905 lots to 158,500 contracts.
Meanwhile, Costa Coffee shops, owned by Britain's Whitbread Plc, on Thursday signed a 15-year franchise deal to launch 100 outlets in the Balkans over the next five years. And on the weather front, No 1 coffee grower Brazil will be mostly dry with near to above-normal temperatures through Monday, DTN Meteorlogix forecast.
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