ICE Coffee Futures End Lower On Sales Before First Notice Day by FC Stone

Arabica coffee futures settled lower on Wednesday due to last minute producer price fixing before the delivery period begins for the December contract. The most active contract for March delivery lost 250 points, settling at 115.75 cents per pound. Volume was high, reaching over 50,000 contracts traded, including 16,493 switches. Late  producer  price  fixing  due  to  low  prices  accumulated  today,  adding  severe  pressure  to  the  market.  The active  switch traded  between  -4.10  and  -2.70  cents,  attracting  large  speculative  participation  and  automatic algorithms. In related news, Cooxupe from Brazil sees the 2016 harvest at 50.0 to 55.0 million bags. Irregular rains contribute to the reduction in potential, added Cooxupe in a Bloomberg interview. From a technical point of view, price behavior will be very important to monitor this week. Without origins pressure, the support area of 115 could be a determinant in the direction of the market in the short run.