Arabica coffee futures for July delivery settled 10 points higher at 163.15 a pound. After prices failed to exceed yesterday’s high, specs preferred to liquidate long positions and take a pause. Volume was boosted by switches as the near July / September began to attract heavy speculative participation. During the previous five years, this structure has developed good volatility trading between -1.45 and -2.60 cents before the first notice day, in this occasion it will be on June 22nd . Rabobank has revised its global deficit estimate for 2021/22 to 3.5M bags, due to a smaller crop in Brazil. Brazilian arabica production for 2020/21 was revised upwards by 4.0M bags to 53M bags, on higher than expected local stocks. Certified stocks increased 4,565 bags to 2,079,583 bags. Pending 135,446. Grading today 14,517, passed 6,215 bags. Failed 8,302. In London, the Robusta July position finished $10 higher at $1601 per ton. Technical buying was encouraged as prices breach the $1600 barrier. A weakening of the arb after trading above $0.90 cents yesterday added support to the London market.
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