The New York coffee "C" market for May delivery settled 10 points higher at 169.80 cents a pound on Thursday. After a little drop early in the session, prices bounced as no significant selling was attracted. At the same time, values neared oversold conditions, and the end of the first quarter of squared books encouraged some short covering. A weak dollar added support to the commodity complex today, as did the currencies of the producing countries. Arabica certificates at the ICE exchange declined by 2,497 bags to 742,894 bags.
The Robusta terminal reverses recent losses as the lack of follow-through in origin selling has prompted a speculative short covering rally, encouraging values to set key resistance resting today at $2224 on May 23 contract. London led the charge through the coffee complex today as spot structure reengaged the upside, with May 23–July 23 lifting $37 to $56 on limited volume. Whilst a layer of commercials rolled into the move below $40 discount yesterday, working exposure in May 23 is still standing at 46,899 lots, leaving plenty of spot management in play. This prompts levels to consolidate between the 20-day moving average of $2138 and the upper Bollinger band average of $2227 on May 23 as participants watch the build in the arbitrage-related long.