ICE Coffee Futures Rally on Short Covering by FC Stone

Arabica  coffee  futures    rallied  Monday  on  speculative  short  covering.  The  most  active  contract  for
December delivery climbed 365 points to close at 120.20 cents a pound. A large non-commercial net
short position that have been accumulated during the recent weeks and lack of follow-through on the
latest price action, triggered the short covering. A recovery of the currencies added support to the
prices. The real bounced after the announcement of a USD$14.6 billion fiscal austerity package.   The
real traded a BRL3.8083, 620 points better at 4:00 pm EST. Markets in general  were quiet ahead of the
Federal Reserve decision on Thursday.