Arabica coffee jumped to an one-month high

ICE Arabica coffee futures jumped to an one-month high on Wednesday, rising above $2 for the first time in about a month as technical buy signals prompted investors to cover short positions and trigger automatic buying.

ICE raw sugar futures rebounded after falling for four days, while cocoa futures rose slightly.

ICE- March Arabica coffee futures closed up 6.20 cents, or 3.2%, at $2.0135 a pound, the highest since Oct. 22. It was the biggest single increase in contracts for the second month since early October.

"Arabica coffee futures jumped because short-term speculators were shorted and technical charts showed stronger buy signals," NewedgeUSA Coffee Marketing Director RodrigoCosta said in an email report.

Shortly after the opening of the New York market, after Arabica coffee broke through the 100-day moving average of $1.9408, trading volume soared and futures increased, said NickGentile, managing partner of NickJenCapital. Arabica coffee futures then rose above the key level of $1.98, triggering stop-loss orders.

Weather forecasts say there will be heavy rain in the main growing areas of Brazil next week, but Arabica coffee futures are still higher.

London International Financial Futures and options Exchange (LIFFE)-January Robusta coffee futures closed up $23, or 1.1%, at $2091 a tonne.

ICE- March raw sugar futures closed up 16 cents, or 1%, at 15.87 cents per pound. LIFFE- March sugar futures rose $1.80, or 0.4%, to close at $416.40 a tonne.

ICE- March cocoa futures closed up $26, or 0.9%, at $2835 a tonne. LIFFE- March cocoa futures closed up 8 pounds, or 0.4%, at 1879 a tonne.

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