ICE Coffee Futures End Lower Giving Back Early Gains by Fc Stone

Arabica  coffee  futures  end  lower  Wednesday  on  speculative  liquidations  after  posting  a  significant  advance early on the session. The active December contract closed 205 point lower at 126.05 cents a pound.  The selling came after prices were unable to exceed the resistance area of 130, basis the December position. Coffee prices were helped early by the real performance that again recovered terrain. The currency traded under BRL3.80 for the first time since September 10. Also coffee prices were helped by a general firm tone seen in the commodity markets, supported by fundamental reports of sizable drops in inventories or decrease of production like the crude oil output in US. Despite that we continue to read reports about lack of rains in Brazil, speculators were more induced by the technical action. Volume increased to 35,994 lots including 8,206 switches.  The active December-March switch was under pressure, widened 25 points to end at -3.25 cents, as traders anticipate a more normal market ahead of the delivery period.