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Coffee futures up

NEW YORK: CSCE arabica coffee futures ended sharply higher, with the key December contract closing at a fresh two-month high amid renewed worries over Brazil's coffee crop, market sources said on Friday.

December has ended above the psychologically important $1.50 per lb level for four straight sessions after drifting in the mid-140's for the better part of a month.

"It looks like a fairly nice move up, and the reason for it is when we look at the fundamentals right now, they are across the board positive," said Smith Barney analyst Walter Spilka.

Mounting concerns over unusually dry weather and possible insect problems in Brazil's coffee growing regions compounded an already shakey crop outlook. Although the arrid weather will only affect crops to be harvested a year from now, traders said the propsect of poor yields in two successive years was giving an added boost to futures prices.

Most-active December ended up 4.00 cents at 155.85 cents a lb, taking out key chart resistance at 154.50. Trades were posted from 151.35 to 157.00. Spot September gained 3.25 to 153.60.

The day's volume was estimated at a moderate 8,516 lots.-Reuter