As fundamentals continue supporting the New York “C” market, commercial and speculative buying boosted the prices today to a fresh six-week-high. The benchmark contract for September delivery closed 350 points higher at 223.95 cents a pound. Commercial activity was substantial as rolling of shorts and industry buying accumulated ahead of the first notice day for the September position, August 23rd . Good support below the 215 level (Sep position) and the breaking of the recent resistance at 222, encouraged the spec buying. Temperatures in Brazil coffee areas have been cooler than normal, but the frost threat is very low. However, weather services advise for a new cold front to be monitored that will surge next Friday. Analysts at Citigroup reduced the 2022/23 global surplus to 1.7 m bags from 3.2 m bags they foresaw last June reported Bloomberg. Abnormal weather patterns in Brazil, Colombia and Honduras can affect the outputs in these countries. Lack of adequate fertilization has contributed to reduce the prospects for the upcoming Vietnam crop. Certified stocks declined 20,054 bags to 571,905, meanwhile the pending for grading added 30,080 bags to 194,162 bags. No grading today.
In London, the Robusta market closed at thigh level since February, with the September position closing $ 71 higher at $2216 a ton, and the November $74 higher at $ 2223 a ton. The availability of coffee in Vietnam is tight and local prices rose this week. It has been difficult for exporters to fill contracts during the last weeks. Farmers are holding stocks until the new crop that will begin in November. Robusta prices has been supported also by low exports of Brazil. Local roasters and soluble industry are buying most of the coffee available. Robusta exports during July fell 60 % reported CECAFE.
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