·ICE Arabica coffee futures opened 155 points lower at 146.60, before recovering slightly to 147.50 as of this writing. ·CONAB’s first estimate of Brazil’s 2013-14 crop at 46.9 to 50.1 million bags. On December 20th, CONAB raised the 2012-13 estimate to 50.8 million bags from 50.5 million last September. ·The LIFFE Robusta market for March delivery is up $15 at $1,930. Spec and industry buying are supporting the market today. ·The US Dollar is firm against major currencies . The Euro traded down to 1.3052, the low after data showed German industrial output inching up 0.2 % on the month. ·The Brazilian real opened flat. Market participants remain concerned with government policies in the power sector.
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ICE Coffee Futures Close Higher on Fund Buying
Arabica coffee futures closed higher Monday helped by spec buying due to the adding of positions by index funds. The most ative contract for March delivery advanced 305 points to settle at 150.40 cents a pound. According with some analysts, index funds could buy around 11,000 lots of Arabica coffee under the re-balancing of the GSCI and the DJ-UBS index funds. A strong real in Brazil, and holiday in Colombia contributed to limit producers selling. In other news, reports from Central America evidenced concerns with ( leaf rust) Roya infestation due to highest temperatures and moisture. Anacafe from Guatemala reduced exportable output to 3.1 million bags from 3.5 estimated last month. The disease is now present in 70 % of the trees, Anacafe added. The IHCAFE ( Honduras) estimated at 5%-10% the level of the infestation, and kept the export forecast unchanged at 5.6 million bags. In Costa Rica, the ICAFE, estimated a reduction of 10% for the 2012-13 crop due to the Roya. In London, the March structure generated a good proportion of the turnover into the session with the March / May trading into $4 and March/July trading at -12 which put down a good part of the morning business. Origin showed scale selling in the March as the board moved into the 1960 zone but tended to back away whilst most of the outright buying appeared to be linked with the arbitrage players as traders responded to the New York strength which followed the pattern of last week. January exposure was 530 lots lower after business on Friday to leave a working balance of 2,900 lots swinging into today’s session. For the moment the important fact is the spot month open position is falling each day. No Grading recorded today which is the market’s main issue. No tenders today either which means the cumulative total for January so far is 2,306 originals and 122 re-tenders. The next upside trigger will be 1980 which should generate enough of a spring action to take the board towards the 2000 when prices will over extend and roll over. The market must take advantage of low stocks and no grading if we are to rally. ICE Coffee Warehouse Stocks were down 936 to 2,585,946 bags. Pending Grading: 61,509 bags. |
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