US MIDDAY: coffee extend rally

23 Sep, 2004

Arabica coffee futures climbed to a new three-month high on Wednesday, extending gains amid a two-week rally on technical factors combined with some concerns about Brazilian crop development.
"There are new long positions by the funds and a lack of origin interest in selling - there was some interest but not that much," one trader said.
On the New York Board of Trade, the most-active December coffee contract settled at 83.55 cents a lb, up 1.90 cents, after moving in a 81.15 cents to 84 cents trading range. It was the highest settlement since June 16.
March 2005 climbed 1.95 cents to 86.40 cents, while longer-dated contracts rose 1.95 to 2.00 cents.
From its bottom trade to its peak, the December delivery has surged about 19 percent since Sept. 8, the start of the rally.

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