Arabica coffee edged away from an earlier 4-1/2-year low as traders squared positions ahead of the upcoming US Independence Day holiday on Wednesday.
September arabica coffee settled up 0.25 cent, or 0.22 percent, at $1.119 per lb after dipping to $1.1150, a contract low for September and the weakest for the second month since December 2013.
“There’s been some commercial buying on the way down and today we’re not seeing the speculator selling. They’re already very short,” said a US trader.
Gains in the Brazilian real against the US dollar helped to support arabica prices. A weaker local currency typically encourages selling of greenback-traded commodities.
September robusta coffee settled up $8, or 0.48 percent, at $1,685 per tonne.
Copyright Reuters, 2018