ICE Coffee Futures Edge Lower by FC Stone

On  Thursday,  Arabica  coffee  futures  for  December  delivery  opened  with  upward
momentum  reaching  a  high  of  122.45.  However  upon  news  of  Brazilian  lawmakers
approving amendments to a bill increasing government spending, the Real weakened,
putting  downward  pressure  on  coffee  prices  until  reaching  a  low  of  119.10.  The
Brazilian real  traded  at  BRL3.9940 at  3:02  pm  EST.  December  delivery  coffee  futures
managed to close at 120.75 cents per pound, down 60 points from yesterday’s close.
Open  interest  fell  yesterday  by  283  lots  for  a  total  of  194,192  lots,  suggesting  some
short covering in yesterday’s price action. Total volume reached 17,603 lots, with 5,367
switches. In weather news, SOMAR reported significant rainfall for Parana and southern
Sao  Paulo  and  only  scattered  rainfall  for  other  areas  of  Sao  Paulo  ,  Cerrado  and
Southern Minas Gerais.