Arabica Coffee Rises as Traders Eye More Dry Weather

  NEW YORK--Arabica-coffee futures rebounded Friday morning after profit-taking took the wind out of

the market's sails during the previous session.

  Futures were recently trading back above the key technical and psychological level of $2 a pound,

but were still in a range inside of the previous day's price action.

  "It's a non-event so far because it's in the middle of yesterday's range," said Hernando de la

Roche, senior vice president at INTL FCStone in Miami. But given that "it's a weather market,"

futures are still volatile.

  "The weather forecast continues to be calling for some rain during the weekend," Mr. de la Roche

said. "But after that it appears there's going to be a dry couple of weeks."

  The worst drought in decades in top-coffee grower and exporter Brazil has pushed the market up 77%

since the start of 2014, as growers and analysts slashed their forecasts for the upcoming harvest.

Additional dry weather could crimp output further, traders and analysts have said.

  Arabica coffee for delivery in May on the ICE Futures U.S. exchange was recently 2.3% higher at

$2.0005 a pound.