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