ICE Coffee Futures Bounce Slightly on Speculative Short-covering by FC Stone

Arabica coffee futures closed higher Thursday on speculative buying induced by technical factors. The
most active contract for December delivery settled 120 points higher at 119.55 cents a pound. Activity
remained modest with volume of 22,259 lots, including 5,017 switches.  Lack of follow- through   after
yesterday sell-off, and a bullish divergence of the RSI ( a popular momentum indicator) encouraged
the spec buying. The real recovered to unchanged , after posting new lows  of BRL 3.81 per $1 early.
The currency  climbed for the first time in five days,  on speculation that the finance minister Levy will
continue  to  have  the  president  support.  The  peso  also  recovered  more  than  600  points,  trading
at  COP3,111.03 at 3:45 pm EST.