US MIDDAY: coffee down on trade profit-taking

27 Jan, 2005

Benchmark arabica coffee futures finished down from a near one-month high on Wednesday, pressured by short-term speculative and trade profit-taking, dealers said. "We pulled back a little bit - it looked like a lot of local participation," said a New York coffee desk trader. "There was some longer-term fund buying in there, but the problem was they couldn't get follow-through from the highs at the open and there was liquidation."
The New York Board of Trade's benchmark March arabica contract fell 0.65 cent to end at 105.10 cents a lb, after roaming a range from 104.00 to 106.25 cents.
Trading featured the start of March-into-May contract rollover, and switching was expected to last a few more weeks, potentially weighing on the front-month contract where non-commercial speculative players are net long.

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