Coffee Jul '19 (KCN19)
Coffee Futures Market News and Commentary
September arabica coffee (KCU26) on Friday closed down -13.65 (-3.92%), and September ICE robusta coffee (RMU26) closed down -191 (-4.72%).
Coffee prices settled sharply lower on Friday, continuing the volatile price swings seen this week. After Intercontinental Exchange (ICE) raised margin requirements for trading coffee futures twice this week, liquidity has dried up, prompting many commodity funds to close their positions and leading to excessive one-way price moves.Â
An excessively long position in ICE robusta coffee by funds can exacerbate any price downturn. Friday’s weekly Commitment of Traders (COT) data showed funds boosted their long positions in ICE robusta coffee by +5,607 in the week ended July 7 to 44,195 net-long positions, the most in more than two years.Â
On Monday, arabica coffee soared to a 5.5-month high, and on Tuesday, robusta posted a 5-month high amid a delayed coffee harvest in Brazil. Safras & Mercado reported on Monday that Brazil’s 202... Read more
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