INTL FCStone Daily Coffee Report

Arabica Coffee Futures opened in weakness following yesterday’s fall. Open interest increased 3,140 lots suggesting new shorts.  After finding support near the September highs, 110 points lower, constant speculative buying brought prices back to positive territory throughout the session amid limited origin pressure. Brazil and Mexico were absent on holiday, allowing prices to edge higher. Breakage of the 163.00 level for the December contract activated buy stop orders shooting prices to 135 points higher to 164.35, where additional origin selling was revealed. Origin pressure deteriorated most of the short term gains, bringing the December delivery contract to settle 145 points higher at 162.90 cents per pound. In related news, coffee exports from Honduras during the month of October surged 326.11% compared to the same month last year, totaling 84,088 bags. In macroeconomic news, the FED left rates unchanged, noting that inflation has increased strengthening the case for a December hike.
 
London Market-The subdued nature of today’s session will have done little to please those participants placing fresh shorts following the move lower on yesterday’s close. While an $8 fall off the opening bell did offer some initial signs that further downside action was imminent, a lack of any origin pressure at these lower prices coupled with a stagnant New York strangled any further negative price action. At less than 8,000 lots volume was below average for a second consecutive session, turnover only lifting toward the close as values moved positive on daytrader short-covering.