Arabica coffee closed down more than 2 percent Friday, falling from Thursday's four-week high and giving back this week's gains on pressure from the strong dollar, traders said. Arabica coffee futures for benchmark March delivery dropped 3.30 cents, or 2.3 percent, to finish at $1.4135 per lb.
Wide session range from $1.3950 to $1.4465. March volume reached 12,867 lots. Arabica coffee futures dropped after a surprisingly robust US jobs report pushed the dollar higher against a basket of six major currencies - traders. A strong greenback makes dollar-traded commodities like coffee more expensive for investors holding other currencies. On Thursday, the key contract closed at $1.4465 per lb, a four-week high.
Top producer Brazil's government will offer to make direct spot purchases of beans from growers from next week on top of product it is already buying through an option scheme, but producers of higher-quality beans may show limited interest.
Vietnam's coffee harvest will be 17.3-18.3 million bags, a fall of up to 20 percent from the previous season, with output in the top growing province Daklak dipping more than 6 percent - traders. Total volume Thursday at 13,529 lots, up from the previous session at 11,392 lots - ICE data. Total open interest by December 3 at 115,493 lots, up from the previous 113,950 lots - ICE.