SEP 2 (SpillingTheBeans)–September Arabica coffee prices did not trade Monday as the ICE futures exchange in New York was closed for Sep 2 Labor Day holiday. But a trader told SpillingTheBeans that traders would be particularly observant to the opening on Tuesday as there was a “certain feeling of calm before the storm” where prices can move in any direction. The ICE market continues to be in a tug of war over direction, with the bull side convinced there is too many weather problems affecting the new 2013-14 harvest in producing countries, arguing that current prices below the cost of production will prevent a sustainable source of supply in the nearby and medium-term future. But the bear side argues that demand is well covered for now, that there is little of no technical justification for prices to move higher and the market has in recent weeks been leaning on the bear argument. September Arabica coffee prices tested fresh 4-year lows on Friday, settling down 1.05 cents at $1.1210 per pound while more forward and active December futures settled down 1.35 cent at $1.1630/lb.
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