NEW YORK, March 17, 2011 - Arabica coffee futures closed higher Wednesday as the market staged a modest rebound after a selling spree sparked by the nuclear plant emergency in Japan which was already reeling from a killerquake and tsunami.
But cocoa futures were hit by late investor selling to close near an eight-week low.
COFFEE
* Tuesday, the contract tumbled 10.35 cents, or 3.8 percent, to finish at $2.6295, its lowest close since Feb. 16.
* McGillivray said bean values supported by tight supplies of washed arabica beans.
* Traders said market players still showing some nervouness over Japan's nuclear crisis.
* They said a close below $2.60 will indicate an end to the recent uptrend.
COCOA
* Key May cocoa futures <CCc2> fell $40 to close at $3,215 per tonne.
* It was the lowest settlement for the market since Jan. 21, according to Thomson Reuters data.
* May premium over July narrowed further to $5, from $9 in the previous session and $30 two sessions ago.
* Cocoa supported by political turmoil in top producer Ivory Coast.
* But supplies of beans more than enough and resolution of the crisis should depress market further - analysts.*******
