Arabica coffee futures declined on speculative liquidation Tuesday. Lack of follow-through of
yesterday’s action disappointed long players that opted for liquidate positions. The contract with the
most of the activity, December, closed 150 points lower at 118.70 cents a pound. Prices were under
selling pressure after the opening, however intra-day trader’s short covering prevented of additional
losses. In related news, the real again devaluated as traders doubted Brazil will be able to implement
fiscal measures. The currency traded at BRL3.8600 at 3:30 pm EST. Other emerging market currencies
were unchanged. Ethiopia production could reach 462,000 tons during the 2015-2016 year, a private
exported said. In recent years, production has recovered substantially, thanks to government
programs. According with the USDA, output is expected at 6.51 million bags in 2015-16.
GCA Stocks reported were up 239,814 bags to 6,123,163 bags on August 31. This is the highest level
since September 2003. Last year GCA stocks declined 5,000 bags to 6,038,503 during the same month.