ICE Coffee Futures Extended Drop by FC Stone

Arabica coffee futures extended drop Monday, as weather analysts  continued to forecast that
rains  will  be  returning  to  the  main    coffee  growing  regions  of  Brazil    by  the  end  of  the
week.  The  most active contract for December delivery  fell 195  points   to 123.90 cents   a
pound.  Isolated  and scattered showers are expected Wednesday, and they may increase later
this week,  with good coverage.  The real recovered modestly, trading at BRL3.8851 at 3:30 pm
EST.    Lack  of  news  and  slow  day,  prompted  buying  of  the  currency  in  speculation  that  the
finance  minister  Levi  will  continue.    The  volume  decreased  to  27,894  lots,  including  6,395
switches. The active December –March switch widened 10 points to end at -3.40 cents.  The
recent weakening of the switch  had  pushed  away  buying interest .  
 
Margin requirement increases tomorrow to $3,000 USD per lot.