ICE Coffee Futures Close Lower by FC Stone

Arabica  coffee  futures  closed  lower  Monday  pressured  by  a  weak  Brazilian  real.  The
contract with most of the volume for December delivery fell 110 points to 117.25 cents
a pound. Volume remained moderate with the action driven by short term specs playing
both sides. The real declined again as traders anticipated further losses for the currency
due to the political tensions, and another downgrade of the credit rating, this time from
Moody’s. The real was trading at BRL3.9725 at 3:00 pm EST. On the weather front, rains
are expected to continue improving in Brazil in the next five to ten day. In Colombia,
recent beneficial rains are expected to continue for two weeks more.  An increment of
the net short non-commercial position in the last COT evidenced the adding of bearish
bets on the recent weeks.