NYBOT-ICE Coffee Futures End Higher on Technical Move

Arabica coffee futures ended higher Monday on speculative buying. The active contract for July delivery settled 1.15 cents higher at 106.85 cents a pound. The action could be attributed in part to technical factors. An oversold condition and the chars showing the market on the low range of the last two years has kept participants aware of a possible corrective move. A larger than expected commercial net long position gave an inkling of the commercials sentiment. Today, an initial rally that followed the early firm action of the London market, was fueled by local and small spec buying that triggered a good size of stops. Fundamentally, traders continued to wit for details of the Put scheme that the Brazilian government will offer to the farmers. The program will be offered through local roasters.
In London, Robusta futures rally to new fresh highs. The active contract for July delivery gained $21 to close at $1,672 per ton. Industry remained as good buyer a the same time that speculative buying was induced by the technical action. Traders are worry with possible supply problems as little coffee remains available from Vietnam and some rains could delay the crop in Indonesia.

• Safras & Mercado of Brazil, will issue their forecast of the 07-08 crop soon.
• GCA monthly stock report will be released tomorrow.
• NYBOT certified stocks up 6,845 bags to 3,997,277 bags.