Risk off. Arabica brought its string of starting the week off with losses to 16 out of the past 20 this year, settling at 89.60 down 120 points. Demand for riskier assets faded, as negotiations between the U.S. and China came to a standstill, while investor concern intensified waiting for China to retaliate after the U.S. hiked tariff’s on $200 bln of Chinese good last Friday. Emerging market currencies took it on the chin, and Brazil was no exception, as their currency fell for the third day running, which did little to assuage an already battered coffee market. Implied outright volume in futures ran about a third of the spreads as short term specs dominated the flows with prices trading within the band of the past week. Robusta traded an inside session ultimately losing $18 in value to settle at 1346 basis July.
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