INTL FCStone Daily Coffee Report

Arabica coffee futures appeared Friday to take a break after complete three weeks of steady rise. The contract with the most of the activity settled 70 points higher at 165.50 cents a pound. The volume reached 32,106 lots including 7,258 lots. In options, main activity focused on calls and puts close to the money nearby contracts. Commercial selling surged a little on weakness of the real. The currency declined to USDBRL3.2003, as corruption headlines tainted the economic outlook and investors’ confidence. The COT report published after the close showed the non-commercials adding 12,059 longs and they are holding now 51,090 net longs. At the same time commercials are holding a net short position of 94,410, adding 11,000. From Oct 18 to 25, the period of the COT report, the market gained 7.10 cents. Total open interest posted another record as of yesterday of 209,739 lots.
A final hour rally in London breached and settled above the weekly high at $2188 to close the week in positive fashion.
Aside from the final hour, much of the rest of the session was fairly subdued, although consistent origin selling through the day acted as a cap on the market as values failed to drive through technical resistance early on. Any thoughts of a sustained test to the downside were quickly erased however when a technical dip uncovered Roaster buying, which acted as a solid platform for buyers to work off into the balance of the day. With November open interest falling to just 4,896 lots following yesterday’s EFPs, the Nov/Jan switch strengthened to $21 premium as remaining shorts scrambled to roll positions as Tuesday’s first notice day looms. Options remained active with 1160 lots of Jan 2050 call were rolled into the March 2150 strike, receiving $29 with 870 Jan futures bought at $2190 and 638 March’s sold at $2189.