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Arabica Futures Higher as Certified Stocks, Dollar Fall

By: Alexis Rubinstein, Managing Editor - Coffee Network

 
Alexis Rubinstein
Managing Editor

CoffeeNetwork - Arabica prices on the InterContinental Exchange are 3.55 higher based on the September contract, last seen at 212.90. Volume is good, with 18,751 contracts at the time of writing. The December contract is trading 3.25 higher at 209.65 with 14,769 contracts.

Arabica futures are higher today, recovering from the sharp losses posted in Friday’s session. The market is also finding some support from the US dollar, which is under pressure today, giving a boost to most commodities. ICE Arabica inventories continue to fall, most recently seen around 660,000 bags, a 23-year low for certified stocks. There have been some reports of dropping temperatures for parts of Brazil later this week, and the markets have been paying close attention to any possibility of frost, which could potentially damage the developing 2023-2024 crop. Later this week, CeCafe will release their data for Brazil’s coffee exports in July.

Robusta futures are also higher today. Exports from main producer Vietnam fell from June to July (see separate CoffeeNetwork report), although supplies are expected to remain ample through the duration of the crop year.

Commodities are mostly higher today.

Brent Crude Oil jumped 1.09% to 95.95 and Spot Gold Futures also firmed by 0.72% to 1,788.32.

The Dow Jones Industrial Average rose 0.41% to 32,937.36 and the Stoxx Europe 600 Index was last seen at 438.93, up 0.74%.     

  • Coffee

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