MARKET INSIGHT: September Arabica coffee prices setttled up 2.40 cents at $1.2365/Lb on July 8th at the ICE exchange in New York. Monday trading was quiet after the long “July 4” weekend and with the July contract expiring traders said a lot of operations were “mostly technical” as positions were moved forward.
JULY 5–September Arabica coffee prices failed to hold on to early gains on Friday and ended unchanged at $1.2125 per pound at the ICE exchange in New York. Trading was sluggish after the “July 4” Independence Holiday where the ICE was closed for business and many market players were absent, taking advantage of the long weekend. Prices were initially up and reached a high of $122.75/lb before losing momentum and falling to be down 1.10 cents on the previous session close. But in the last hour of trading prices rebounded, which traders attributed to “fears in the market of becoming too bearish” as prices are now below the cost of production in most countries.
JULY 4–ICE closed for trading due to July 4 Holiday in the U.S.
JULY 3–July Arabica coffee prices failed to hold on to gains from the previous two sessions and settled down 2.95 cents at $1.2115 per pound on Wednesday. Good weather in the world’s top grower Brazil supports the already favorable outlook for the ongoing harvest of the new 2013-14 crop there and weighs heavily on the market, traders said.
JULY 2–July Arabica coffee prices continued to correct upward in Tuesday’s session at the ICE in New York and settled up 2.80 cents at $1.2400 per pound on July 2. Traders said there is no sign yet, however, of this being signs of a rally in the building amid positive weather forecasts for the ongoing Brazilian harvest. Prices are still significantly below the cost of production in most coffee growing countries where costs at larger coffee estates average $1.80/lb.
JULY 1–Exclusive SpillingTheBeans Market Insight: July Arabica coffee prices corrected in late session to settle up 1.20 cents at $1.2120 per pound on July 1 at the ICE futures exchange in New York. Traders said the market was “edgy on going too low” and being “too bearish” as supply in the near-by term remains tight. Despite a big Brazil crop, uncertainty over both the impact from the rust disaster in Central America and lower crops from Indonesia and Vietnam weigh on the overall market outlook, as does near record net short fund positions worth 9-11 million 60-kilogram bags.