Arabica coffee futures recovered 3.8 % Wednesday surprising short players. The active contract for March delivery gained 5.70 cents to close at 154.85 cents a pound. The action was caused by short covering as prices bounced after posting new fresh lows early on the session. No delivery notices were issued last night against the December contract. The nearby December-March switch continued to deteriorate, ending at – 10.20. Volume of the switch was tiny. A report from Rabobank, forecasting that coffee prices could recover to 160 in the first quarter of 2013 and to 170 during the second quarter contributed with the rally. Improving of the economy growth, and any problem with the crops next season, might induce speculators short covering and industry buying, the report argued. In other news, from Brazil, the real closed weaker against the US dollar, but recovered from early losses as optimism about the budget talks in US emerged later.
ICE Coffee Warehouse Stocks were down 312 to 2,492,349 bags. Pending Grading: 71,508 bags.