NY coffee reverses to settle at a 15-1/2-month low

NEW YORK, Oct 28 (Reuters) - Arabica coffee futures settled at a 15-1/2-month low on Tuesday, after a consolidative session buoyed by light short-covering and firm global markets, traders said.

    * ICE Futures U.S. December arabica <KCZ8> closed down 0.05 cent at $1.0770 per lb, the lowest settlement for the spot-month contract since July 9, 2007, on a continuation chart.

    * Trades spanned $1.07 to $1.1090.

    * By 2:08 p.m. EDT (1808 GMT) the December contract again was down 0.05 cent at $1.0770. The market closes at 3:15 p.m.

    * December volume reached a light 6,138 lots at the same time.

    * U.S. dollar <.DXY> was weak against a basket of currencies earlier in the session, providing a boost to the market - traders.

    * The dollar later turned higher.

    * Arabica firm on spillover support from the stronger commodity complex and stock markets around the world.

    * Global stocks rallied for a good part of the day from five-year lows, although Wall Street struggled to hang onto most of its early gains of more than 4 percent.

    * Investors expect the United States to slash interest rates on Wednesday, with Europe and Britain likely to follow next week, as policy-makers in the world's major economies fight to head off a prolonged slump. [ID:LS110165]

    * Arabica market boosted earlier by combination of short-covering, investor buying and bargain hunters - traders.

    * Market eased when this buying interest waned - traders.

    * Reuters-Jefferies CRB index <.CRB>, a global benchmark for commodities, climbed around one percent earlier.

    * Coffee flirting with another contract low, after making a lifetime low at $1.0505 Monday - Ralph Preston, analyst for HeritageWestFutures.com in San Diego, California.

    * Market expected to move lower Wednesday on weak chart-based indicators - Preston.

    * Sharp declines in Vietnam's domestic coffee prices, of as much as 13 percent in the past week, have prompted some exporters to delay shipments until November to escape losses - traders. [ID:nHAN239586]

    * Mostly dry conditions to continue in No. 1 coffee producer Brazil on Tuesday with the chance of a few showers Wednesday through Saturday - DTN Meteorlogix.

    * Total arabica volume Monday at 14,489 lots. Open interest dropped 763 lots to 128,290 lots as of Oct. 27 - ICE data.

Source : Thomson Reuters