Arabica coffee futures for March delivery settled 225 point or 1.15% lower at 191.95 cents a pound. A day with reduced activity. The operations were mainly from short-term speculators looking for price volatility within the price range of the last four sessions. The nearby active Mar/May switch showed some weakness ended 2.95 cents down 30 points. The perspective for the Brazil 2024-25 crop improved as some rains developed recently and forecast for next week are expecting moderate to heavy rains in areas of Minas and Espiritu Santo. During the week Arabica prices advanced 2.50 cents or a 1.3%. Fundamentally, the weather appears more favorable for the Brazil crop, while in Colombia El Nino has caused drought in main producing areas of Antioquia and Huila. According with local sources, if rainfall does not come soon coffee plantations in Huila could be affected. Technicals are neutral to negative as oscillators began to show the market a little weak against the recent highs. Cert stocks increased by 4,997 bags to 266,890 bags. Pending certification decreased 5,465 bags to 65,114 bags. Graded today a total of 9,945: 5,202 passed and 4,743 failed.
COT (CIT) Non-commercials increased their long position by 4,373 lots to 55,789 lots long and increased their short position by 3,628 lots to 21,679 lots short, with a net long position of 34,110 lots in the week to January 30th.
In London, the Robusta position for March delivery closed $50 or 1.5% lower at $3237 per ton. The market turned lower as farmers in Vietnam increase selling before the Tet holiday begins on the 8th. At the same time the specs were encouraged to liquidate longs as prices failed to maintain this week’s advance. Robusta prices posted a historic high this week supported by supply tightness and firm roaster’s demand.