US arabica coffee futures ended a tad higher on Tuesday on light speculative buying with some pressure from the stronger Brazilian real, traders said. "You're coming toward the end of the year, into the fourth quarter and these funds are trying to keep it at this level," a coffee trader said.
In the pit, ICE March arabica ended 0.65 cent higher at $1.306 per lb., trading in a tight band of $1.2985 to $1.31. One contracts aside, the rest finished up 0.65 to 0.70 cent. On the electronic platform, March arabica was 0.35 cent stronger at $1.303 cents a lb by 1:54 pm EST (1854 GMT).
The rest were 0.45 to 0.80 cent higher. ICE estimated final open-outcry volume at 1,515 lots, compared with 2,028 lots on Monday, when 9,490 contracts traded electronically.
Open interest was up by 602 lots at 155,118 lots as of December 3. DTN Meteorlogix forecast scattered showers and thunders showers through on Saturday in the coffee producing regions of Brazil, with .50 to 2.00 inches of rain expected. Favourable conditions for budding trees in the Sao Paulo and Minas Gerais regions are expected, the forecaster said.
London robusta coffee futures finished little changed after a session featuring active position rolling, underpinned by a pick-up in trade and roaster buying after on Monday's sharp decline in prices. January closed down $14 at $1,739 per tonne. The contract fell to a 3-month low of $1,711 a tonne on Monday weakened by system fund selling. The ICE March robusta contract did not trade by 2:37 pm ICE Futures electronic trade ends at 3:15 pm.