N.Y. Arabica Coffee Futures Soar 4.6%

N.Y. Arabica Coffee Futures Soar 4.6%   
NEW YORK--
Arabica coffee futures in New York rallied 4.6% Thursday, asconcerns over weather in Brazil prompted short-covering from investors.   Arabica for July delivery gained seven cents to settle at $1.5775 a pound onthe ICE Futures U.S., the front-month's highest settlement since June 4. Themore actively traded September-delivery contract ended 4.2%, or 3.7 cents,higher at $1.5880 a pound.   "I think traders are trading the weather in Brazil," said Judy Ganes-Chase,president of J. Ganes Consulting.   Arabica coffee futures have dropped 30% this year, one of theworst-performing commodities, as expectations of a record harvest out of topgrower Brazil weighed on prices along with concerns over slowing globaleconomic growth.   The recent wet weather, just as Brazil is preparing to harvest its 2012-13crop, is providing some support to the market.   But this has invited mostly short-covering by speculators in the market, notcommercial roasters. Analysts and international coffee traders have said demandfrom coffee roasters has been quiet.   "With their arabica coverage good, fresh demand has been lacking over thepast few months, and will likely remain subdued for another month or two," saidMacquarie Bank in a recent report. "Perhaps by the end of Q3 roasters will needto restock ahead of the peak winter demand period."   One international coffee trader said the upside may be limited. "Unless[roasters] start to see that Brazil is a problem, they won't chase the markethigher," said the trader. "I view this as a short-covering event."