INTL FCStone Daily Coffee Report

Arabica coffee futures for December delivery settled 195 points lower at 155.90 cents a pound. Rains developed on the main growing areas of Parana, Sao Paulo, y Minas Gerais and forecast of a more stable pattern of precipitations for next week, encouraged the speculative selling. The Espiritu Santo areas, main Conilon producer, remain dry. Volume reached 31,053 lots including 5,862 switches. The active December –March switch remained at -3.50 cents. Good volume was noted on the December 155 and 150 Puts. OI showed a large number of Puts (more than 22,000 contract ) from the 155 to the 130 strikes against the December position. The market action was also influenced by the technical picture. A well-defined resistance area at 160 could limit the advance in the short term. Oscillators slightly over-bought complement the picture for a corrective move.
London Market- London operated in subdued fashion with values hovering at the middle of the week’s trading range.
Prices fell $20 through the first hour as technical participants anticipated overbought conditions, though support emerged at $2113 for a third consecutive session, aided by additional roaster buying present in lighter volumes. Open interest fell 6565 lots representing the neutralisation of futures positions following yesterday’s Nov16 option expiry. Turnover through the Nov/Jan switch was limited as values weakened to $27, with November open interest now standing at 26,438 lots, of which half is held by the certified stock holder. Options activity simmered, with 200 lots of the 2250/2000 fence (to the call) traded in Jan, March and May, with upside protection continuing to be sought down the board.