Coffee prices to extend rally
Wednesday, 16 September 2009
CHICAGO, Sept. 15 (Bloomberg): Coffee prices may rise in the short term to the highest level since Aug. 10 because futures are poised to top so-called resistance, said Nicholas S. Hayman, a senior trader at LaSalle Futures Group in Chicago.
On ICE Futures US in New York, arabica-coffee futures for December delivery surged 5.2 per cent yesterday, the most since January, after opening lower. The market closed at $1.331 a pound.
"The quick reversal basically changed everyone's sentiment," Hayman said in a telephone interview. This week, the December contract, the most-active on ICE, can "easily" top $1.375, "an old resistance" level last breached on Aug. 7, he said.
Then, the December price will test $1.4165, the two-month high reached on Aug. 10, Hayman said yesterday. That would leave the contract up 6.4 per cent from yesterday.
On ICE Futures US in New York, arabica-coffee futures for December delivery surged 5.2 per cent yesterday, the most since January, after opening lower. The market closed at $1.331 a pound.
"The quick reversal basically changed everyone's sentiment," Hayman said in a telephone interview. This week, the December contract, the most-active on ICE, can "easily" top $1.375, "an old resistance" level last breached on Aug. 7, he said.
Then, the December price will test $1.4165, the two-month high reached on Aug. 10, Hayman said yesterday. That would leave the contract up 6.4 per cent from yesterday.