Arabica-Coffee Futures Extend Gains as Traders Cover Shorts

  NEW YORK - Arabica-coffee futures rose Thursday morning as traders continued

to book profits from short positions after the market bounced off a more than

four-year low earlier this week.

  "Right now, it's just trying to find its floor," said Hector Galvan, senior

broker at RJO Futures in Chicago.

  Global supplies of coffee beans have swelled thanks to back-to-back bumper

crops from Brazil, the source of one-third of the world's coffee, and

recovering production from neighboring Colombia, which have weighed on prices

this year.

  Arabica coffee for December delivery on the ICE Futures U.S. exchange was

recently 1.1% higher at $1.1575 a pound, a one-week high.

  "If the (U.S.) dollar starts breaking up further because of the shutdown,

coffee might get a little bounce back to $1.25," Mr. Galvan said.

  A weaker dollar against the Brazilian real curbs selling pressure in the

market. A stronger real discourages exports of coffee because producers receive

less reais back for their crops sold abroad in U.S. dollars.