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Coffee futures

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NEW YORK: CSCE arabica coffee futures ended higher Wednesday in a technically strong close, traders said, as the December contract crossed the $1.50 per pound mark for the second consecutive day.

Steady fund buying, coupled with a dearth of origin sales, brought the market up toward its session highs late in the day, though the widely watched December contract fell short of chart resistance near 154.50 cents.

Traders said December's close should send a strong buy signal to both end-users and commodity funds, who had drifted away from the market this month as it lingered in the mid-140.00's.

"The technical picture looks fabulous," said one trader. "I expect (December) coffee to test 1.60-1.65 later this month or earlier next month."

But some analysts cautioned that any bull run would be short-lived, since producers were waiting to cash in on the rally if the market neared the 1.60 level.

December rose 1.60 cents, to 153.25, after ranging between 150.85 and 153.60. Spot September closed out the first day of its notice period up 1.70, at 151.20. Volume was light, at an estimated 6,652 lots.-Reuter