Benchmark arabica coffee futures rose to a near one-month contract high Tuesday, fuelled by demand from funds and speculators on the heels of a rally in robusta prices in London, traders and analysts said. "The locals were playing on the short side at the beginning of the day. When the selling dried they started buying back, and good fund buying in London also moved the market," said a trader.
The New York Board of Trade's benchmark March arabica contract rose 1.10 cents to settle at 105.75 cents a lb, near the top end of a trading range from 102.30 to 105.90 cents. It was the loftiest settlement since December 29, when the contract finished at 107.95 cents.