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Prices Recovery
With a drop in production expected across the major producing countries coffee is in for some good times across the globe.
After a 7% loss during the week prices showed signs of recovery.
Arabica coffee futures sprinted off seven-week lows on Friday on the New York Board of Trade as funds, small speculators and locals bought in May and later months.
The March notice period began and recent pressure from funds liquidating March longs subsided, allowing the market to turn higher.
The March contracts closed up 345 points at $1.0945 a pound, and May gained 295 points to $1.1155.
But Brazil's 2006-07 coffee crop suddenly looks at least 2 million 60-kilogram bags smaller because of dryness and fungus problems.
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