Arabica Coffee futures continued their descent on Wednesday. The most active contract for December delivery
closed 115 points lower, at 119.85 cents per pound. Open interest continued to grow, increasing by 1,484 lots
to 184,138 total lots. Since last Thursday, open interest has increased by 7,146 lots, suggesting new speculative short positions entering the market. Total volume reached 24,208 lots, including 5,747 switches. Coffee prices are once again nearing the lower 10% range of the last five years below 119.00 basis the spot December contract. In fundamental news, reported rain in coffee areas of Minas Gerais triggered the downfall, although it is possible that the market has discounted upcoming rains to a certain extent. Somar reported that rain in coffee regions in Minas Gerais reached 17 mm yesterday. Also, scattered rains are expected to continue throughout the weekend. The Brazilian real recovered, trading at BRL 3.9095, while the Colombian peso closed at COP 2904.19.