Arabica coffee settled up a shade Friday, in choppy dealings of position rolling and long liquidation out of the spot contract ahead of first notice day February 19, traders said. The market will close for the Presidents Day holiday Monday, February 16, reopening for regular trade Tuesday.
The May arabica coffee contract rose 0.55 cent to finish at $1.15 per lb. Trades spanned $1.1380 to $1.1590 per lb. May volume at 11,326 lots by 2:01 EST (1901 GMT). The market trades until 2:45 pm. Relatively heavy March-May spreading ahead of the first-position contract's first notice day February 19 made up for a significant chunk of the day's volume - traders.
Arabica futures briefly turned lower when long-liquidation weighed on the March contract ahead of next week's first notice day - traders. Market partially retraced losses from Thursday, when arabica futures closed at a near six-week low. The International Coffee Organisation (ICO) forecasts global demand will stand at 130 million 60-kg bags in 2009, outstripping an expected supply of 124-125 million bags - executive director Nestor Osorio.
Starbucks Corp is moving into the instant coffee market as it works to shake off its reputation as a seller of pricey coffee drinks. The heart of the coffee belt in the world's No 1 coffee grower is set to see showers of up to 50 millimetres on Friday and up to 60 mm on Saturday before beginning to ease by Sunday, private weather forecaster Somar forecast Friday.
Scattered showers and thundershowers to continue bringing 0.1 to 0.75 inch of rain daily to top grower Brazil, through Saturday, with similar conditions Sunday through Tuesday - DTN Meteorlogix. Total volume on Thursday at exceptionally heavy 52,079 lots - ICE data. Open interest by February 12 at 129,187 lots, down from the previous 134,787 lots - exchange data.
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