ICE Coffee Futures Rise 355 Points After Volatile Finish by FC Stone

Arabica coffee futures for December delivery closed 355 points higher on Friday at 124.30. The
session  began  with  an  upward  trend,  and  maintained  momentum,  supported  by  the  weak
dollar  and  short  covering.  The  COT  report  for  September  29 th   shows  that  managed  money
covered  3,814  short  positions,  ending  with  net  21,949  short  lots.  On  the  other  hand,
merchants liquidated their long positions by 1,910 lots for a total of net long of 2,480 lots.
Weather concerns caused by el Niño in coffee regions, and volatility in the Brazilian real fueled
the  upward  move  in  prices.  In  Colombia  and  Indonesia,  reports  have  indicated  that  the
droughts caused by the phenomenon have had a significant negative impact on coffee areas.
In  addition,  lack  of  rains  in  Brazil  over  the  past  couple  of  weeks  have  worried  market
participants. The Brazilian real traded at 3.9470 at 3.05 pm EST, a recovery from yesterday
against the weakening dollar, caused by disappointing September job creation report figures in
the United States of 142,000, almost 40,000 under estimates. Volume traded today reached
27,723 lots with 5,001 switches.