INTL FCStone Daily Coffee Report

Arabica coffee futures ended with little change at the end of another quiet session. The most active contract for December delivery settled at 148.40, 50 point s lower. Volume reached only 12,000 lots including 1,778 switches. The absence of fundamental news and any significant technical development cause the lack of participation. The dollar was firm against the main currencies; however a firm real discouraged coffee sales. The real reversed earlier losses, as positive sentiment was generated by President Temer’s veto salary increases of some public workers. Other Latin American currencies, the Colombian and Mexican pesos were down more than 1 percent as commodities prices fell. During the week, prices finished 235 points lower, consolidating near short term moving averages during the latter half of the week.
London Market- Options drove the majority of noteworthy action in London as a further subdued session drew the week to a close.
Values fell $6 off the opening bell responding to final hour weakness in the ‘C’ contract last night. Dollar strength, aided by U.S consumer prices increasing more than previously expected, prevented any significant tests to the upside.
Exposure continues to be built around the Nov 2100 call where 1000 lots traded at $13, which will be of significance if the market continues to test further highs. Conversely, downside protection remained of interest to participants with an additional 800 lots of the Nov 1800 put traded at $12.