US arabica coffee settled firm on Tuesday, recouping some of Monday's losses on a technical bounce amid active spreading and a lack of origin selling, traders said. The market held support levels for May at $1.08 and July at $1.11.
"We're up on the fact that we held those key support levels, because if we take those out we could probably push another 200 to 300 hundred points lower because there's been active buying by roaster and specs down at those levels," one trader said. The NYBOT open-outcry May coffee rose 1.15 cents to close at $1.0960 per lb, with trades spanning $1.0825 to $1.0990.
Benchmark July climbed 1.05 to $1.1225, in dealings from $1.1090 to $1.1260, while the rest closed up 1.00 to 1.15. On the ICE New York Board of Trade electronic platform at 1:52 pm.
The May contract was up 1.20 cents at $1.0965 per lb while July was up 1.00 cent at $1.1220. Players continued to roll out of their May positions into July ahead of the May contract's first notice day on Friday.
In London, coffee futures settled firm with the Liffe benchmark July rising $8 to settle at $1,582 per tonne, with trades ranging from $1,565 to $1,593. NYBOT estimated 9,411 lots traded in the pit, compared with the 47,054 contracts that were officially tallied on Monday, when 27,785 of the contracts traded electronically.
Meanwhile in No 1 coffee grower Brazil, DTN Meteorlogix forecast mostly dry conditions with the chance of light showers through on Sunday with near to above normal temperatures. In East Africa, Kenyan coffee prices generally declined at Tuesday's auction due to a huge quantity on sale, exporters said.