ICE Coffee Review: Advances From 6-Wk Low; Shorts Cover

Pit-traded arabica coffee futures rose Friday on ICE Futures U.S., recovering from six-week lows touched early after industry buyers lent support and shorts covered while traders watched weather for Brazil's spring bloom.

Kraft Foods (KFT) raised coffee-list prices Friday, following hikes by other major U.S. roasters this week.

ICE pit December closed 85 points higher at $1.2145 a pound after sagging to $1.1980.

"Some people may have bought because Brazil's weekend will be mostly dry, though more rain is expected next week," a desk trader said. Other buyers were spurred by the latest roaster-price increase, he said, but added "these roaster price changes are like the caboose on a train" and reflect a reaction to past market activity.

A New York desk manager said "we're higher but there doesn't seem to be much upside from here, with more rain in Brazil next week and pictures of healthy flowers there circulating." In 15 days, the ICE December liquidation will pick up, he noted.

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