ICE Coffee Futures Extend Gains by FC Stone

Arabica  coffee  futures  extended  gains  Friday  but  retraced  from  highs  posted  early.  The
contract  with  most  of  the  activity,  March  settled  200  points  higher  at  124.40  cents  a
pound.  The market rallied after the opening on speculative buying, helped by the USDA report
of  the  Brazilian  crop.    Prices  reversed  during  the  last  hour  of  trading,  as  speculative  profit
taking capped the advance.   The 2015-16 production was pegged by the USDA at 49.4 m 60
kilo bags, 9 percent lower than the 2014-15 crop. The report was published yesterday after the
market  close.    The  BM&F  in  Sao  Paulo  was  closed  today.    During  the  week,  Arabica  prices
gained  7.42  per  cent  or  $0.0860  per  pound.  Reduced  origin  sales  after  the  FND  and  good
support on the March chart under the 115 level facilitated the up move. Despite good rains
had started to develop in the main areas of Brazil; concerns remained about the Conillon crop
in  the  State  of  Espiritu  Santo.    USA  GCA  stock  fell  168,880  bags  to  total  5,948,228  bags  in
October.  The  average  drop  of  the  last  five  years  is  176,000  bags.    The  BRL  and  the  COP
remained steady at BRL3.7200 and COP3,070.