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CSCE coffee mixed at midday, seeking direction

NEW YORK: CSCE arabica coffee futures were mixed toward midday, with the spot September contract firmer while most active December lingered near unchanged.

Traders said September benefitted from spread play as speculators rolled short positions into the deferred contracts ahead of its expiry.

Meanwhile, December drifted within a tight two-cent range in scant volume after failing to break through chart resistance yesterday above 154.50.

"It's a lackluster market," said one trader. "There is no news of any significance."

September traded up 0.30 cent a lb, to 149.80 cents, ranging from 149.25 to 151.50. December was down 0.15 cent, to 151.50, trading from 150.85 to 152.95. An estimated 2,772 lots were exchanged as of 1100 EDT.

A series of weather reports indicating unusually dry weather in Brazil offered background support earlier in the week, but forecasts calling for rain in the eastern portion of the coffee belt tonight put drought worries on hold, dealers said.-Reuter