ICE Coffee Futures Consolidate Lower by FC Stone

Arabica coffee futures lost terrain Monday on speculative profit taking. The active contract for March delivery
settled  195  points  lower  at  122.45  cents  a  pound.  The  activity  was  slow  reflecting  the  holidays.    Volume decreased to 16,098 lots, including 1,581 switches.  Since the opening the market was under pressure following the  Friday’s  last  hour  performance.  A  strong  dollar  and  the  weakness  of  global  commodities  induced  the liquidation  of  long  positions.  The  real  declined  slightly,  trading  at  BRL  3.7337 at  3:00  pm  EST. The  COP was steady  at  COP3,073.  Rains  continued  to  develop  in  Brazil  with  ample  coverage  during  the  weekend. Accumulations totaled 30 to 50 mm, with some areas reporting up to 100 mm. Rains are expected to increase during the next 3-4 days. In related news, Rabobank increased the estimated deficit in 2015/16 to 2.7 million bags from a previous of 1.9 million bags. The preliminary estimate for the 2016/17 harvest is 58.0 million bags. The  current  situation  and  the  index  fund  rebalancing  could  push  prices  beyond  130  in  the  first  quarter, Rabobank added.
 
USDA Vietnam 2015/16 Output revised up to 29.3 million bags from 28.6 previous.