US MIDDAY: coffee edges up

16 Jun, 2005

US coffee futures firmer Wednesday after late trade and commercial buying absorbed earlier sales by funds and speculators, market sources said. New York Board of Trade most-active September arabica settled up 0.35 cent at $1.1460 a lb. The contract found roaster support after falling to a fresh four-month low of $1.12 earlier. "It was a bit choppy. We've gone down quite a bit, so I think the market wants to retrace to the upside," said a trader.
Indeed, the September arabica price shed 13.8 percent from last Monday's peak to today's low. Many traders attribute the slide to a market correction following a recent surge in prices on market concerns about poor crop conditions in Vietnam, the world's second biggest coffee producer.

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