Today’s Market:
·ICE Arabica futures May contract opened 10 points higher today at 133.20 cents a pound, and is currently trading higher at 133.50 cents. ·LIFFE Robusta futures May contract opened $3 higher today at $2158 a ton, and is currently trading lower at $2146. ·Various sectors of Colombia have withdrawn support from the Federation, citing poor management of the strike as the cause. ·The Euro is firmer on expectations that the European Central Bank will contain the Cypriot financial crisis.
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ICE Coffee Futures Continue to
Slide Arabica coffee futures were again under pressure Tuesday on producer and spec selling. The benchmark contract for May delivery finished 125 points lower at 133.10 cents a pound. Activity was moderate with the volume decreasing to 20,549 lots. Commercial selling remained mainly from Colombia but lighter than the previous session. Several coffee departments from the main growing areas withdrew support to the FNC’s manager and asked for his resignation. In Brazil, a firm real discouraged producers selling. The real closed higher against the dollar at BRL 1.9845 from BRL 1.9869 yesterday. Coffee producers will ask ministers to support a higher price for the coffee, the President of the Agricultural and Livestock Federation of the State of Minas Gerais (FAEMG), Roberto Simoes, said. The government has helped prop up coffee prices in the past, Simoes explained, by offering to buy at a fix price on a specific date. The New York-London arbitrage narrowed to 35.3 cents/lb, the lowest settlement since December 31, 2008. Today’s settlement for the futures contract is the lowest since June 7, 2010. London: Initial weakness off of the opening was well taken by scale-down industry buying and it was not long before the board started to stabilise. A lack of follow through selling soon prompted the market to reverse and a phase of spec short-covering saw the board steadily edge higher for the balance of the morning session. Values were only able to achieve single digits in the plus column before moving back into reverse on the back of a weak ‘C’ contract. Business was generally orderly through the afternoon with Robusta being supported by arbitrage related buying. Only late in the session did the pace quicken to the downside, fresh spec selling ensuring a close on the lows. At just over 10,000 lots the volume seems weak in comparison to the price action. Nevertheless, the poor settlement does point to additional losses short-term. Support lies in the shape of the 20-day moving average which only now starts to loom into view ($2135). |
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