Coffee Traders' Forum - A Discussion about Coffee Futures Trading


Coffee Traders Discussion Forum

Coffee Traders' Forum

Coffee Futures Rise as Beans Disappoint

Coffee Futures Rise as Beans Disappoint

Coffee futures moved higher Tuesday as the market found buyers looking to
snatch up supplies over concerns that the harvest in Brazil may not be as large
as previous estimates.

Arabica coffee for September rose 0.5% to $1.428 a pound on the ICE Futures
U.S. exchange, on track for its highest close since April 18.

"The spot offers are still cheap in comparison to procuring Brazilian coffee
from exporters, at least for those who do not need higher quality beans from
the largest producing country," Rodrigo Costa, director of trading at Comexim
USA, said in a note to clients.

As Brazil, the world's largest coffee producer, approaches the end of the
harvest, Mr. Costa said, yields have been lower than expected, which led one
major firm to revise its production estimate downward from 56 million bags to
55 million bags, he said. Producers have reported beans that are smaller than
expected.

Still, inventories in consuming countries have been steadily rising and
speculators in the coffee market have been reticent to bet on higher coffee
prices. As of last Tuesday, hedge funds and other money managers were betting
on lower prices, with a net-short position of 14,190 contracts, an improvement
for the bulls over the previous week when they were outweighed by 24,208
contracts.

In other markets, raw sugar for October was off 0.7% at 13.77 cents a pound,
cocoa for September was down 0.5% at $2,019 a ton, frozen concentrated orange
juice for September lost 2.3% at $1.31 a pound, and December cotton rose 0.5%
to 70.93 cents a pound.

By Julie
Copyright (c) 2017 Dow Jones & Company, Inc.

ICE-EU Coffee Gradings, Tenders - Aug 8

08-08 ICE-EU Coffee Gradings, Tenders - Aug 8

There are no coffee gradings today.

(END) Dow Jones Newswires