Falls On Technical Sales, Brazil Weather
DOW JONES NEWSWIRES
Arabica coffee futures for September delivery lost 3.2% Tuesday on chart-based selling and as weather conditions remain favorable for the Brazilian harvest.
Most active September coffee fell 5.25 cents, or 3.2%, to settle at $1.5855 a pound.
Nearby July coffee, which expired Tuesday and added to the market's volatility, lost 5.55 cents, or 3.4%, at $1.5645 a pound.
Coffee futures have lost 6.6%, since reaching a high of $1.6980 Friday, on a combination of technical selling and as weather remains conducive for the ongoing Brazilian harvest. Worries over the U.S. economy have also hurt the market as weaker-than-expected economic data have rattled investors and led them to reduce exposure to commodities.
Technical selling was key to Tuesday's trade, an influence that was exacerbated when prices slipped below $1.60 a pound, said Hernando de la Roche, managing director of coffee trading at Hencorp Futures in Miami.
At this level, the market ran into pre-programmed sell orders, which ultimately pressed September coffee to $1.5825 a pound--its lowest level in two weeks.
In addition to the bearish chart influence, prices also lost traction on benign weather in top-grower Brazil.
"Conditions are dry, there is no frost and, since there is nothing really happening with the weather, it was another reason the market continued to go down today," said de la Roche.
Brazilian weather service Somar said the main coffee-growing regions will see dry, temperate weather this week, with no frost threat. The absence of rain will allow the harvest to progress.
The Brazil coffee harvest began in May and will run through September.
Traders continued to fret about the U.S. economy after a weaker-than-expected housing report.
Housing starts fell 5% in June to their lowest level since October 2009, the Commerce Department said Tuesday. The report showed housing continues to struggle amid weakness in the broad economy.
Building permits climbed 2.1% in June, versus pre-report expectations of a 0.7% rise, offering a ray of hope that activity is picking up.
The recent string of weaker-than-expected economic reports has caused traders to shun riskier commodity assets on ideas that demand for physical assets will be suppressed.
Total open interest on ICE fell 2,993 to total 171,912 lots.
Futures volume is pegged at 19,426 contracts, with 4,912 calls and 4,138 put options traded.
ICE Change (cents) Range
July $1.5645 dn 5.55 $1.5645-$1.6110
Sep $1.5855 dn 5.25 $1.5825-$1.6270
DOW JONES NEWSWIRES
Arabica coffee futures for September delivery lost 3.2% Tuesday on chart-based selling and as weather conditions remain favorable for the Brazilian harvest.
Most active September coffee fell 5.25 cents, or 3.2%, to settle at $1.5855 a pound.
Nearby July coffee, which expired Tuesday and added to the market's volatility, lost 5.55 cents, or 3.4%, at $1.5645 a pound.
Coffee futures have lost 6.6%, since reaching a high of $1.6980 Friday, on a combination of technical selling and as weather remains conducive for the ongoing Brazilian harvest. Worries over the U.S. economy have also hurt the market as weaker-than-expected economic data have rattled investors and led them to reduce exposure to commodities.
Technical selling was key to Tuesday's trade, an influence that was exacerbated when prices slipped below $1.60 a pound, said Hernando de la Roche, managing director of coffee trading at Hencorp Futures in Miami.
At this level, the market ran into pre-programmed sell orders, which ultimately pressed September coffee to $1.5825 a pound--its lowest level in two weeks.
In addition to the bearish chart influence, prices also lost traction on benign weather in top-grower Brazil.
"Conditions are dry, there is no frost and, since there is nothing really happening with the weather, it was another reason the market continued to go down today," said de la Roche.
Brazilian weather service Somar said the main coffee-growing regions will see dry, temperate weather this week, with no frost threat. The absence of rain will allow the harvest to progress.
The Brazil coffee harvest began in May and will run through September.
Traders continued to fret about the U.S. economy after a weaker-than-expected housing report.
Housing starts fell 5% in June to their lowest level since October 2009, the Commerce Department said Tuesday. The report showed housing continues to struggle amid weakness in the broad economy.
Building permits climbed 2.1% in June, versus pre-report expectations of a 0.7% rise, offering a ray of hope that activity is picking up.
The recent string of weaker-than-expected economic reports has caused traders to shun riskier commodity assets on ideas that demand for physical assets will be suppressed.
Total open interest on ICE fell 2,993 to total 171,912 lots.
Futures volume is pegged at 19,426 contracts, with 4,912 calls and 4,138 put options traded.
ICE Change (cents) Range
July $1.5645 dn 5.55 $1.5645-$1.6110
Sep $1.5855 dn 5.25 $1.5825-$1.6270
Nenhum comentário:
Postar um comentário