US MIDDAY: coffee jumps by speculators buying

03 Nov, 2005

US coffee futures jumped 4 percent Wednesday, buoyed in large part by speculators buying back their short positions from a recent three-week low and lingering worries about supply tightness, sources said.
Traders and analysts said the buying had accelerated once the front-month contract moved above $1 a lb, the first time since last Thursday.
The New York Board of Trade's active December arabica contract rose 3.95 cents, or about 4.1 percent, to settle at $1.0105 a lb, after trading from 97.75 cents to $1.0125 a lb. The top trade was the highest since October 27. The December delivery had been down more than 8 percent from last week's peak of $1.0525 a lb.

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