NYBOT arabica coffee futures finished at a one-month low on Monday on speculative sales and switch business as the absence of crop-damaging frost in top grower Brazil acted like a millstone round the markets neck, analysts said.
July arabicas sank 2.10 cents to finish at 73.60 cents a lb, ranging from 72.85 to 75.75 cents.
It was the lowest close for coffee since ending at 72.35 cents on May 21, 2004.
Active September slid 2.20 to 76.10 cents. Losses in other months ranged from 2.20 to 2.65 cents.
Mike McDougall, senior vice-president of FIMAT USA Inc, said news that Brazil will enjoy mild weather has kept futures on the defensive.
James Cornier, an analyst for Liberty Trading Group, said the weather bulletins for Brazils coffee belt have been notable for the lack of any threatening weather system.
Forecaster Meteorlogix said there is no damaging cold expected in Brazil over the next seven days.
Private meteorologist Somar said the Brazilian winter season got off to a warm start and no cold snap is seen entering the area during the next 10 days.
"We have got no frost so the funds are just dumping it," a trading house broker said. Switch business added to the pressure in coffee, especially with first notice day looming in July on Tuesday, as players liquidated their last positions in the market.
Open interest in the July arabica contract sank 5,385 contracts to 9,136 lots as of June 18 while interest in September climbed 3,615 to 68,395 lots.
Technicians said they see resistance in the September contract at 79.50 and 80 cents, while support should be at 76 and 75 cents.
Final estimated volume hit 33,671 lots, against the prior count of 26,974 lots.
Call volume was 4,775 lots, while puts reached 3,577 lots.
Open interest in the arabica coffee market fell 1,538 to 99,702 lots as of June 18.
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