Arabica coffee futures clawed up from early losses to finish firm on Friday, in sideways dealings buoyed by book-squaring at the end of the month, with some companies facing the end of their fiscal year, dealers said. ICE Futures US December arabica finished up 2.00 cents at $1.13 per lb. Trades moved in a range from $1.0915 to $1.1360. By 2:29 pm EDT (1829 GMT) the December contract was up 2.50 cents at $1.135. The market closes at 3:15 pm.
December volume reached 11,087 lots at the same time. Book squaring at the end of the month as well as the end of the fiscal year for some funds helped buoy the market - traders. Arabica futures were weak earlier, pressured by the firm US dollar - traders.
Session seen as consolidative following recent volatility amid the worst financial crisis in 80 years, with the key arabica contract dropping 29 percent to a 17-month intraday low on October 27 at $1.0505, from the session peak August 27 at $1.4785. A side effect of the current credit crunch is that market participants are largely ignoring unfavourable weather conditions in top coffee grower Brazil - October 30.
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