Commentary for October 16th
ICE Coffee Futures Finish Slightly Higher
Arabica coffee futures closed slightly higher Thursday marking the end of a very quiet session with most of the market’s participants looking for fresh fundamental news. The most actively futures contract for December delivery settled 110 points higher at 217.10 cents per pound. Volume was scarce with only 16,804 lots exchanging hands today. The session traded within yesterday’s range today, and this is the 8th straight session where we have traded within last Monday’s range. In related news, Somar Meteorology kept its forecast for hot and dry conditions in the main coffee growing regions of Brazil. The extended forecast calls for rainfall that should cover southeast Brazilian coffee belt. The commodity markets closed mixed today CME Ethanol up +4.01%. among the biggest winners.
London Market - New York’s late day surge to the downside called London lower this morning and for the first few minutes at least, the market did not disappoint. Values fell sharply during the initial exchanges, breaching nearby support at $2165 before sliding another $30 in less than 10 minutes. Selling done, the board promptly went into reverse trading back up to encounter light origin selling scale up. No change in the mid-session weather forecasts left many players out of ideas and the afternoon’s action reflected that. Volume was the lowest of the last three sessions coming in at just 15,413 lots and even then turnover was boosted by an active front spread, trading into -7 before easing back to end the day at -14. Liffe Certified Stocks are due for release this evening.
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