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CSCE coffee reverses to close up, lack of selling

NEW YORK: CSCE coffee futures closed higher on Tuesday when speculators reversed their action to buy, with additional support coming from light industry buying and a lack of origin selling, traders and brokers said.

Key March arabicas settled at 115.75 cents a lb, up 3.20 cents, after trading 118.25-110.60 cents. May gained 3.30 to 118.65 cents and the rest rose 2.90-3.75 cents.

CSCE was closed Monday in observance of Martin Luther King, Jr., Day.

Mark again tested the 110-cent support level in early trading when local and speculative selling came in, floor traders said.

But speculative and light industry interest, coming in two waves, reversed the downward trend, with a lack of producer selling also a supporting factor, brokers said.

"There was very good buying on the close, on good volume, although a little selling came in as it was closing, so the market was pushed back" one broker said. "I hear it was spec buying."

Participants await the publication from the Green Coffee Association (GCA) of U.S. warehouse stock data.

Traders and brokers contacted last week by Reuters said they were expecting an increase of between 100,000 to 206,000 60-kg bags in December's stocks.

According to historical data from the GCA, warehouse stocks have increased seven times during the month of December since 1988, when the GCA began keeping records.

Technicians said resistance for key March was around 120 then 126 cents. Support was pegged at 113-112 then 109-110 cents.

Volume was an estimated 8,898 lots against Friday's official tally of 13,087 lots previously. Call volume reached an estimated 4,368 lots, whilst puts were seen at 1,622 lots.-Reuters