The Arabica futures market extended the rally on Thursday, supported by both fundamental and technical factors. The nearby contract for May delivery settled 585 points higher at 196.10 cents a pound a six-month high. Volume reached 128,335 lots, boosted by 45,618 switches. The active May-July switch attracted good spec participation trading inside 1.55/2.05 cents range. Lower exports from Brazil, and the decline of the Colombian output during March added concerns about short term tight supplies that has supported the market recently. A weak US dollar has helped to buoy commodity prices. The commercial selling almost absent has allowed coffee prices to move up easily. At the same time, the firm technical development after the breaking of the February ‘s high level of 194, triggered systems buying and attracted solid speculative buying as well. Certs decreased by 10,305 bags to 710,687 bags. Pending grading remains at 0.
In London the Robusta followed the New York action. The May contract settled $50 higher at $ 2,382 per ton, a 11 1/2-year high. In Vietnam, good commercial demand keeps local prices firm as farmers are reluctant to sell as little stocks are still available. Also concerns about the dry weather affecting Vietnam that could diminish the 2023/24 crop.
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