Arabica closed the month down 85 points, settling 101.80 while posting a higher high, higher low. International intrigue was again on the table, and with month end there were many moving parts. An early unexpected announcement that a decision could be made today with respect to Lula’s ability to campaign in the upcoming election was considered supportive, as was a poll that showed Bolsonaro pulling even with Lula in Sao Paulo. Nonetheless, speculative selling into the end of the month, particularly on the close, seemed typical of a manufactured settle. Interestingly KC traveled closely along the path of the DXY, ignoring the improving BRL from roughly 10:30 to 12:30, suggesting (only partially tongue in cheek) that coffee simply finds the most bearish macro correlation to follow on any given day. News of Coca Cola’s acquisition of UK coffee chain Costa dominated the mind space of many commercial traders, with the larger ramifications for the industry at the forefront. One fund trader noted the irony in Coke’s expansion into what they called a hot and growing segment while green prices remain under assault . Robusta finally posted small scale notices, with 54 lots being tendered today. However OI remains a chunky 5601 suggesting that the deliveries were on the margins. RC futures fell another $21 to 1501, briefly taking out the 1500 line with a low 1497, the first time the market has done so since April 2016.
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