Arabica coffee futures settled lower Monday reversing from recent advance. The most active contract for September delivery close 130 lower at 123.95 cents a pound. Volume reached 32,572 lots , including 9,811 switches. The active September-December switch settled unchanged at -3.20 cents. The coffee market was again pressured by the weakness of the currencies in today session. The real lost 318 point to end at BRL3.4535 and the Colombian peso lost 385 points to end at COP2,918.40. Recent concerns about the development of the crop in Brazil , were offset by comments from ECOM’ s Brazil J. Esteve. There is no reason to revise the size of the crop, he said in a telephone interview, adding that the recent dry weather will help to catch up any delay of the harvest. Cocamar, another Brazilian coffee coop, forecasted a normal output for this year. Good rains during the May-July period will help a very good crop for the 2016, they added, reported DJ.
London Market - Origin selling as a result of physical business done in Vietnam over the weekend made sure London started the day in a deficit with values dropping nearly $20 in the first 30 minutes of trade to post the lowest low since the 27th May. Early strength in the dollar saw macro sellers keep the pressure on following the initial push lower ensuring no let-up by mid-session. The Commitment of Traders Report for Robusta, (released at lunchtime today) showed the funds to still hold a net long position of 7,060 lots despite liquidating 2,376 lots over the last reporting period. Structurally, the Sep/Nov spread continues to weaken moving back towards $20 discount on a lack of buying while outright turnover has barely breached the 10,000 mark.