Coffee Futures At The NYBOT Close Higher On Late Rally

Arabica futures at the NYBOT closed modestly higher on Wednesday as the spot May contract rose 0.35 cents to 114.05 cents per pound. Trading was mostly quiet on Wednesday as local participants and speculative interest created a 2.60 cent range; establishing the high and low as 115.30 and 112.70, respectively. The market action consisted of very light volume until after the London terminal closed and a surge of buying broke through resistance at 114.50 and 115.00. However, the large number of buy stops that were purported to be above the technical objective of 115.00 basis May, did not affect prices as local long liquidation and origin fixation capped the rally. Today’s movement represents an additional settlement within the consolidation zone of the last seven trading sessions. The environment seems to be one of cautious restraint as heavy fund involvement continues to be absent. In related news, the CRB Index also enjoyed a positive bounce finishing 0.77 points higher at 354.04.

• First Notice Day for March Robusta Coffee: Wednesday March 1, 2006.
• 6 Delivery Notices were issued for March 1. Total delivery notices issued for March contract = 3,527. To access
Delivery Notices issued for March 1, please visit www.nybot.com (Click Coffee, Industry Reports/Delivery Notices). They should be available after 7:00 p.m. EDT.
• CSCE certified stocks were down 16,749 bags to 3,591,714 as of February 28. Bags Pending: 28,434