ICE Coffee Futures Recover on Short Covering

Arabica coffee futures recovered Wednesday on short covering after the recent liquidation eased. The most active contract for May delivery regained 780 points to close at 137.55 cents.  Substantial volume was developed since the opening, for a total of 41,715 lots including 8,906 switches.  Despite that the Brazilian real remained weak, reaching today new lows, coffee prices bounced.   A lessening of the recent selling and the oversold condition of the market could have contributed to the recovery.  In related news,   COCATREL, a coffee coop from Tres Pontas, Minas Gerais, said coffee crop in their region could fall 20 percent on drought from previous season.  Output is down to 800,000 bags this year from 1,000,000 last year and from 1, 5 million bags on year 2013. Roberto Felicori manager of the coop said to Bloomberg News.  Total rain through January is 730 mm, less than half 1,500 mm average for the region.