Benchmark arabica coffee futures erased morning losses to close higher Friday, led by renewed speculative interest as well as roaster buying before March delivery period begins. "Everyone is kind of afraid to be short this market because the fundamentals are very positive for this year," said Rodrigo Correa da Costa, trader/analyst at Fimat USA. "Some funds bought today - some who have been out of the market for a little while."
Additionally, traders have said coffee roasters have been steadily fixing (buying) before the nearby March contract's first notice day for delivery on February 17.
The New York Board of Trade's benchmark March arabica contract rose 2.10 cents to 105.30 cents a lb, near the top of a 101.50-to-105.75 cents session range.