Arabica coffee futures for December delivery settled 115 points or 0.7 % lower at 148.65 cents a pound. The activity was mainly driven by short term specs. The volume reached 23,432 lots including 4,007 switches. Fundamentals continued unchanged. During the week, Arabica futures prices declined 3.25 cents or a 2.13 %. The market continued under pressure as the Brazil’s harvest is coming to an end a fresh coffee will flow in the marketplace. The dollar index strengthened to a six-month high of 105.15 supported by US economic data. The weak technical picture attracted spec selling. A sharp reversal from a bounce at mid-week opened the road for further dips with a 140’s target. During the week the OI increased by 5,599 lots to 199,659 lots, evidencing the new shorts. Certified stocks fell 8,258 bags to 450,153 bags today. During the week, a total of 33,230 bags were withdrawn from the ICE NY exchange. At the same time coffee from Brazil has been arriving as a total of 17,560 bags are now pending grading in Antwerp from 0 pending the previous week.
In London, the November contract ended unchanged at $ 2,407 per ton. Activity was light, total volume at 8,705 including 1,613 switches. The Nov/ Jan switch firmed to 91 premium. Sep23 contract OI still holds 4,074 lots with 11 trading sessions left. The lack of activity has been noted as market trades lower in search of the 2350 area of support.
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Arabica coffee futures closed higher Wednesday on speculative buying. The most active contract for December delivery settled 225 points higher at 155.35 cents a pound. The breaking of the highs of the previous four sessions encouraged the action. A significant decrease of the certified stocks added the bullish sentiment. The certified stocks have declined 21,694 bags so far this week, falling to 490,739 bags, the lowest since Nov 17th last year. In related news, the harvest of the 2023/24 Brazil crop is expected to end by the second week of September, according to Cepea. Recent rains in the producing regions have alerted farmers, as it has restricted the pace of activities. In addition, precipitation at this time can deteriorate the quality. Colombia coffee imports declined by 142,448 60-kg bags from 920,20360-kg bags to 777,755 60-kg bags during January-June period. On Monday Sept 4th, the New York markets will be closed on observance of the Labor Day Holiday.
In London, the Robusta for November delivery closed $7 higher at $2496 per ton. The market followed the New York activity. The cocoa and sugar markets in London firmed today adding support to the soft complex. Tight supplies due to dry weather in India and Thailand buoyed the sugar price that reached a 12-year high today. Cocoa futures in London set a 46-year as a global deficit is expected. |
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