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2518 views July 26, 2013 posted by Maja Wallengren

MARKET INSIGHT: Coffee Prices End Week Down on Profit Taking At $1.2225/Lb July 26

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JULY 26–September Arabica coffee closed down 2.25 cent per pound on Friday at $1.2225 per pound at the ICE futures exchange in New York. Trading this week also leaves Arabica prices 0.45 cent down overall, but the market has managed to hold on to gains of close to 3 cents from last week’s scare over frost and other multiple weather problems in the world’s top grower Brazil and prices are up 2.95 cents from prices of $1.1930 on July 15th. The week continued to be dominated by a tug of war between bears and bulls with Brazil concerns sending the market higher every other day, only to be followed by predictable profit-taking the following session. Offers from origin are now almost exclusively quoted against the higher-based and more forward December contract, which closed down 3.05 cents on July 26th at $1.2425/lb.

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JULY 25–September Arabica coffee futures settled up 3.55 cents per pound at $1.2480/lb on Thursday at the ICE futures exchange in New York after a strong performance where prices stayed in positive terrain for most of the session and recovered most of the losses from Wednesday’s session dominated by profit taking. Arabica futures opened up 0.55 cent and despite a short-lived attempt by the bear camp to try to pull the market lower prices stayed higher throughout most of the session on renewed concerns over weather problems in Brazil. The latest concerns over multiple problems from erratic weather increased following reports of potential frost in part of the southern growing belt in the next few days in Brazil, the world’s largest producing country. Offers from origin are now almost exclusively quoted against the higher-based and more forward December contract, which closed up 3.35 cents at $1.2730/lb on July 25th.

JULY 24–September Arabica coffee closed down 4.85 cents per pound at $1.2125/lb on Wednesday at the ICE futures exchange in New York, failing to hold on to gains accumulated during the last 8 sessions and sparking new uncertainty over the direction of the market. Arabica futures opened flat on Tuesday’s close and climbed 0.30 cent before starting to fall, then crashed all the way down to $1.2085 before bear sentiment met resistance and recovered some losses before the close. Traders said concerns over multiple weather problems in the world’s biggest producing country Brazil continue to weigh heavily on the market, as do net short fund positions of about the equivalent of some 9 million 60-kilogram bags.

JULY 23–September Arabica coffee closed up 0.80 cents per pound at $1.2610/lb on Tuesday at the ICE futures exchange in New York, breaking through the psychological barrier and support level of $1.26/lb for a further upward trend in prices. Arabica futures opened 0.10 cent higher and sporadic profit taking and bear sentiment quickly pulled the market down to an intra-day low of $1.2325/lb, but prices pulled back on concern over weather problems persisting in the world’s biggest producing country Brazil. The Brazil concerns continue to weigh on the market and lend support toward prices settling into a higher range above $1.30/lb, traders said. Producing countries and trade in origin, meanwhile, also said that with the July Arabica contract now expired offers for new 2013-14 crop coffee were increasingly quoted against the more forward December contract, which settled up 0.90 cent at $1.2875 on July 23rd.

JULY 22–September Arabica coffee closed up 2.60 cents per pound at $1.2530/lb on Monday at the ICE futures exchange in New York. Prices recovered well after Friday’s profit taking-dominated session that cut into gains from earlier last week, with a healthy buying spree succeeding in Arabica futures breaking back into the higher range well above the psychological support barrier of $1.24/lb. Traders said that as multiple weather problems persist in the world’s biggest producing country Brazil prices hold potential to “move back into a range over $1.30/lb“ if they can continue to gradually strengthen this week.

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  • […] MARKET INSIGHT: Coffee Prices End Week Down on Profit Taking . JULY 26September Arabica coffee closed down 2.25 cent per pound on Friday at $1.2225 per pound at the ICE futures exchange in New York. Trading this week also leaves Arabica prices 0.45 cent down overall, but the. […]

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