Coffee Commentary for Nov 29--from FC Stone

ICE Coffee Futures Recover on Short   Covering  


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.