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Arabica Futures Continue Lower

By: CommodityNetwork Team - USA, CommodityNetwork USA

CoffeeNetwork

Arabica Futures Continue Lower

CoffeeNetwork - Arabica prices on the InterContinental Exchange are trading lower by 5.25 based on the September contract, last seen at 195.20 with heavy volume around 25,725 contracts. The December contract is also trading 5.40 lower at 197.95 with 14,612 contracts.

Arabica futures are lower again today, steadying after touching nearly seven-year highs earlier this week. The major focus remains Brazil’s winter weather, with another cold front moving into parts of the coffee belt tonight into tomorrow. This would be the third frost event so far this month. The correction lower is overshadowing external factors as well, including rallying currencies in Latin America today. Brazil’s Real jumped for the fourth consecutive session.

In other news, a webinar today hosted by CeCafe, the National Coffee Association and the Swiss Coffee Trade Association highlights challenges with shipping and logistics brought about by the global pandemic and how the container and vessel shortage will impact the coffee trade moving forward.

Robusta futures are also lower today, following declines in the Robusta market.   

Commodities are lower today as the US dollar weakened. The US economy advanced an annualized 6.5% on quarter in Q2, well below market forecasts of 8.5%. The number of Americans filing new claims for unemployment benefits dropped to 400 thousand in the week ending July 24th.

Brent Crude Oil rose 1.26% to 75.68 and Spot Gold Futures also jumped 1.31% higher to 1,835.00.

The Dow Jones Industrial Average rose 0.56% to 35,127.06 and the Stoxx Europe 600 Index was last seen at 463.81, up 0.46%.  

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