INTL FCStone Daily Coffee Report for July 18/17

Arabica coffee futures declined from the 6 ½ week high, on speculative liquidation. The most active contract for September delivery settled 15 points lower at 133.55 cents a pound. Without new fundamental developments to give a clear direction to the prices, participants opted to play both sides of the market, causing some volatility to the prices. Low temperatures in South America caused extreme cold and some snow events during the weekend, however the jet stream kept the mass of polar air south of Brazil, out of the coffee areas. Temps will gradually rise during the second half of the week.  
•              GCA June US stocks up 180,422 bags to 7,295,945 bags.   This is 1,084,000 higher than June 2016 and the highest since 1994
•              Colombia markets will be closed Thursday on observance of the Independence Day.  
 
With commercial interest thin on both sides of the London market for now, outright values traded a narrow daily range, instead observing movements in New York. Prices failed to press higher following Friday’s encouraging settlement as intra-day longs backed away having digested weekend CFTC reports showing managed money short covering earlier than many participants anticipated. Following this news, the London COT report released around midday showed a 2412 lot reduction in the managed money net long which now stands at 19,291 lots long. Many will look to these figures and attribute to the widening of the Sep/Sep arbitrage by three cents over the reporting period. Certified stocks were unchanged at 15,259 lots and although the pace of the fall looks to have slowed for now, the market will continue to carefully observe stocks over the coming sessions. Grading’s have diminished over recent weeks with nothing shown to the board so far this month. The last Grading’s were reported on 30 June, taking the monthly total to 189 lots.