Coffee Commentary for Oct.22nd
ICE Coffee Futures Continue to Fall on Weather News
Arabica coffee futures continued the recent trend , declining 850 points to settled the active contract for December delivery at 191.10 cents a pound. Expectations of rains for this weekend in the main growing coffee regions encouraged the speculative liquidation. Activity was moderate with volume reaching 18,762 lots , including 4,213 switches. The active December /March switch widened 5 points to end at -4.20 cents. According with SOMAR, after the weekend another cold front will bring good rains to the entire region. Coffee prices were influenced by other markets that fell today. The commodity index fell 262 points to 484.72, near the recent lows. Commodities declined as the dollar rise and subdued US inflation cut demand for gold and precious metals.
London Market - London had put in a very presentable performance yesterday, climbing off of the lows in the latter part of the session to end the day broadly unchanged. The strong close implied followthrough buying and the early action this morning tended to support that; fresh short-covering taking levels through yesterday’s highs in the opening minutes. From there on, someone wasn’t reading the script. Volume dropped to a dribble as the board stagnated ahead of $2070, scale origin offers enough to stymy any further strength. Despite several attempts to break higher, resistance held through the afternoon before values eased into the end of the day to end the session back on the defensive. 11,410 lots of volume is the lowest turnover of the week and one of the lowest this month. The structure eased slightly in line with the outright with Nov/Jan trading back to $14 discount.
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