Arabica coffee futures for September delivery closed lower on Monday after a very volatile week as a result
of options expiration last Friday. The September contract settled at 134.75, down 275 points. The volume
reached 44,477 contracts including 15,861 switches. The U/Z structure keeps widening and it reached the
lowest level since the 26 th of May at -3.90 before settling the day at -3.75. The open interest on Friday was
reduced by 5,996 lots, which reflects the short covering behavior that the market has had over the past
few sessions. The down move was mainly influenced by an overbought technical condition on the daily
chart and the rumors of an increase in the GCA warehouse stocks, that was later confirmed by the
publication of their monthly report with a total of 5,833,349 bags of inventories for the month of July,
which is 7% higher than the inventories of the previous month.
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