1136 EDT [Dow Jones] – ICE arabica coffee futures are trading off of fresh
seven-month highs as fund buying boosts prices amid the weaker U.S. dollar.
July coffee is up 190 points at $1.3130 a pound, off of the $1.3205 high, and
the Sep contract is 190 points higher at $1.3315. “The technical outlook is
better today, encouraging additional fund buying,” says Hernando de la Roche,
managing director of coffee trading at Hencorp Becstone Futures in Miami. A
close above $1.31 will confirm July coffee’s recent break higher and will
likely push prices toward $1.35-$1.37, de la Roche says. The physical market
continues tight and USDA attach reports forecasting slightly lower to
unchanged 2009-10 coffee crops in Honduras and Mexico are adding support as
well, says de la Roche. Volume is light as commercials sit on the sidelines
waiting for new developments, he says. Liffe July robusta coffee is up $2 at
$1,531 a ton. (HEH)