Coffee Futures Edge Higher by FC Stone

After  the  aggressive  fall  of  the  past  two  trading  days,  Arabica  coffee  futures  finished  85  points  higher  on Tuesday at 124.75 cents per pound for December basis. The most active contract for December delivery opened with  a  10  point  gap  towards  the  upside,  however  it  could  not  maintain  the  upward  momentum  and  began working  downwards,  breaking  yesterday’s  lows  and  reaching  123.25  cents  per  pound.  Nevertheless,  prices remained in the positive throughout most of the trading sessions. Volume reached 23,684 lots including 5,892 switches.  Open  interest  during  yesterday’s  negative  movement  increased  by  676  lots  to  180,838  total  lots, suggesting new short positions entering the market. In weather news, dryness is expected to stay for the next 6-10  days  in  northern  Minas  Gerais,  Espirito  Santo,  and  Bahia,  however  once  rains  arrive,  soil  moisture  will improve,  and  light  showers  will  follow,  according  to  MDA  Weather  Services.  Regarding  emerging  market currencies, the Brazilian real weakened, trading at BRL3.9035 at 2:50 pm EST while Colombian peso closed at COP2935.47.