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3141 views December 20, 2013 posted by Maja Wallengren

MARKET INSIGHT: March Arabica Coffee End Up 1.55 Cents At $1.1530/Lb Dec 20 As Vietnam Concerns Persist

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DEC 20 (SpillingTheBeans)–Active March Arabica coffee futures closed stronger on Friday at the ICE futures exchange in New York with prices settling up 1.55 cents at $1.1530 per pound. Futures opened higher and stayed in higher terrain throughout the session, reaching an intra-day high of $1.1670 before settling. Concerns over “very slow shipments” out of Vietnam, the world’s second largest producing country, continued to weigh heavily on the market, a trader told Spilling The Beans. Futures have made net gains of about 10 percent, or some 10 c/lb in the last two weeks but prices are still, however, well below the cost of production in most producing countries. Weather damage from erratic rains and dry seasons provoked by the growing impact of climate change also continue to create additional problems for growers in keeping in line with the upper side of crop forecasts for the new 2013-14 world crop. More forward May Arabica futures, meanwhile, closed up 1.50 cents near recent 4-month highs at $1.1750/lb.

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DEC 19 (SpillingTheBeans)–Active March Arabica coffee futures weakened on Thursday at the ICE futures exchange in New York with prices settling down 2.20 cents at $1.1375 per pound. Futures were up for most of the over-night session at the ICE but opened lower when regular trading hours started as profit taking set in after net gains over the last week worth about 10 percent, or some 10 c/lb. Prices still, however, remain well below the cost of production in most producing countries and weather damage from erratic rains provoked by the growing impact of climate change also continue to create additional problems for growers in keeping in line with the upper side of crop forecasts for the new 2013-14 world crop. More forward May Arabica futures, meanwhile, closed down 2.15 cents near 4-month highs at $1.1600/lb.

O-NIGHT, DEC 19 (SpillingTheBeans)–Arabica coffee futures continued to strengthen in early overnight trade Wednesday at the ICE futures exchange in New York, with the active March contract up 0.25 cent to a fresh 4-month high of $1.1620 per pound. (3a.m. update)

DEC 18 (SpillingTheBeans)–Active March Arabica coffee futures extended gains on Wednesday at the ICE futures exchange in New York with prices settling up a healthy 1.80 cents at $1.1595 per pound as concern over the continuing slow sales out of the world’s Number 2 producer Vietnam continued to weigh on the market. Futures opened a tad higher and continued to rise through the session, reaching a high of the day of $1.1650 before the market pulled back a bit. Net gains in prices since funds last week entered the market and started to cover short positions have now reached about 10 c/lb, or about 10 percent higher. Prices still, however, remain well below the cost of production in most producing countries and weather damage from erratic rains provoked by the growing impact of climate change also continue to create additional problems for growers in keeping in line with the upper side of crop forecasts for the new 2013-14 world crop. More forward May Arabica futures, meanwhile, closed up 1.80 cents at fresh 4-month highs of $1.1815/lb.

DEC 17 (SpillingTheBeans)–Active March Arabica coffee futures closed lower on Tuesday at the ICE futures exchange in New York with prices settling down 1.15 cents at $1.1415 per pound after profit taking set in following gains of over 9 cents in the last week. Futures opened higher in and attempt to hold on to additional gains from the over-night electronic session, but started to lose momentum despite high volume, traders said. Active buying by funds, which during the last week have been in the market to cover short positions before the end of the year, kept activity busy and traders said the lack of selling out of the world’s second largest producer Vietnam continues to provide support to the market. More forward May Arabica futures, meanwhile, closed down 1.00 cent at $1.1635/lb.

O-NIGHT, DEC 17 (SpillingTheBeans)–Arabica coffee futures continued to strengthen in early overnight trade Tuesday at the ICE futures exchange in New York, with the active March contract up 0.50 cent to a fresh 4-month high of $1.1580 per pound. (3a.m. update)

DEC 16 (SpillingTheBeans)–Active March Arabica coffee futures continued its recent strong performance on Monday, keeping all gains from the last session close to settle up 0.05 cent at $1.1530 per pound at the ICE futures exchange in New York after surging to a fresh 4-month high of $1.1725/lb. Prices opened flat but quickly started surging before temporary profit-taking set in and brought prices back down to a session low of $1.1415/lb. But active buying by funds out to cover short positions before the end of the year kept volume at one of the highest levels seen in weeks and led to a recovery in prices in late session. Traders said the lack of selling out of the world’s second largest producer Vietnam continues to provide the main support to prices as evidence of what the bear-camp believes to be a “record crop” two months into the new Vietnamese harvest has failed to materialize. More forward May Arabica futures, meanwhile, closed down 0.10 cent at $1.1735/lb after reaching a session high of $1.1925, the closest Arabica futures have been to break back through the $1.20/lb-barrier for over a month.

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