INTL FCStone Daily Coffee Report

Arabica coffee futures finished higher Monday, recovering from early losses. The most active contract for December delivery settled 215 points higher at 153.55 cents a pound. Prices were under pressure early due to specs liquidations following Friday’s action. The COT (CIT supplemental) report showed non-commercials adding 1,791 longs for a net total of 39,951 appeared to influence the initial selling as well. The non-commercial categories added 5.7 %, and now are holding the largest net long position since March 2008. In related news, COOXUPE, the largest coffee coop in Brazil announced they estimate the 2016-17 Brazil coffee crop at 52 million bags, compared to CONAB’s latest estimate of 49.64 million bags.
London Market- It may be the start of the week but Robusta just could not get going today. A lack of fresh fundamental or macroeconomic news doing little to help. The board did gain a little ground against Friday’s settlement but the lack of volume (the second lowest this month) tells its own story. Support was found via arbitrage traders as Nov/Dec values narrowed a further cent to 61.35. Funds continue to seek downside protection against longs via the Nov 1800 put with another 300 purchased at $4 today. This week’s COT figures showed the funds to have added a further 998 lots over the reporting period. The net managed money position now stands at 37,076 lots long. This is smallest week/week gain in the managed money position over the last month, suggesting the fund’s appetite for Robusta may be on the wane.