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CSCE coffee

off firmer

NEW YORK: CSCE arabica coffee futures ended firmer Wednesday but late-session profit taking drove the market down from its intraday highs, market sources said.

The market rallied between 1.00 and 2.00 cents a lb as expected at the opening, supported by news of a large drawdown on U.S. warehouse stocks in July. Warehouse inventories fell by 252,000 bags on the month, the Green Coffee Association reported late Tuesday, to 3.277 million bags.

Traders and analysts said the stock figures were moderately bullish, but the market pulled back this afternoon when follow-through buying failed to emerge.

"You saw some initial buying, but that buying dried up, and people took profits," said one analyst. "Most people felt that to a large extent (the GCA stocks) were pretty well discounted."

September rose 0.20 cent a lb, to 147.35 cents, after trading between 146.00 and 148.75. December climbed 0.90 cent, to 146.35 cents, while the rest gained 0.60 to 0.70.

An estimated 7,692 lots changed hands on the day.-Reuter