Coffee Futures Closed Higher
Coffee futures closed higher today after having spent most of the session in the red. Buyers began to show up going into the official settlement period, pushing both terminals to close near session highs in what looked like commercial short covering.
A big 429 lot decertification of robusta stock over the weekend had the market talking today, with certified stocks for the London terminal now at a two month low and November first notice day four weeks away, there is a valid concern for a potential short squeeze going into the delivery period.
This week marks the beginning of a crucial window for the 2025/26 crop development in Brazil. After a dry September, sporadic rains have triggered flowering across the coffee belt, although not uniform in scope, there is a good portion of the harvested Arabica areas that has begun to flower and will need rains and humid conditions to prevent yield losses. For the areas that have not yet begun to flower, rains are needed to take the plants to the next phase of development. For now, the GFS model still shows rains beginning at the end of next week, while the European model still shows dryness into next week.
A dockworker strike risks closing U.S. East Coast and Gulf ports at midnight tonight. Latest reports confirm negotiations are still stalled as the dockworker union pushes for wage improvements from the current contract that expires at 12:01 AM New York time tonight.
At the time of writing:
USDBRL 5.4502 +0.0037%
USDCOP 4,193.26 -0.08%
Miami London Brazil
305-925-4847 +44-203-580-6099 +55-11-3509-5426
ICE Arabica
Volume:
40,144
ICE Robusta
Volume:
10,776
Brazil Arabica
Volume:
846
Arabica-Brazil Arbitrage
Arabica-Robusta Arbitrage
Arabica Switches
Robusta Switches
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