Arabica coffee futures for December delivery closed 355 points higher on Friday at 124.30. The
session began with an upward trend, and maintained momentum, supported by the weak
dollar and short covering. The COT report for September 29 th shows that managed money
covered 3,814 short positions, ending with net 21,949 short lots. On the other hand,
merchants liquidated their long positions by 1,910 lots for a total of net long of 2,480 lots.
Weather concerns caused by el Niño in coffee regions, and volatility in the Brazilian real fueled
the upward move in prices. In Colombia and Indonesia, reports have indicated that the
droughts caused by the phenomenon have had a significant negative impact on coffee areas.
In addition, lack of rains in Brazil over the past couple of weeks have worried market
participants. The Brazilian real traded at 3.9470 at 3.05 pm EST, a recovery from yesterday
against the weakening dollar, caused by disappointing September job creation report figures in
the United States of 142,000, almost 40,000 under estimates. Volume traded today reached
27,723 lots with 5,001 switches.