New York coffee falls

US open-outcry arabica coffee dropped to a lower close on Monday on fund selling and pressure from the robusta market, traders said. We felt like the market was a bit under pressure from some funds that were selling it and also the London stops that were hit.
There was a two-minute range that just dropped like a rock, one trader said, adding this triggered heavy selling in New York. NYBOT open-outcry benchmark September finished 1.65 cents lower at $1.1235 a lb, with trades ranging from $1.149 to $1.118, a one-week low dating back to July 16.
The rest finished from 1.50 to 1.70 cents lower. On the ICE New York Board of Trade electronic platform at 1:42 pm EDT (1742 GMT), September coffee was 1.80 cents lower at $1.122 a lb, in dealings from $1.1175 to $1.1485. "The funds (that) came in and sold, we're thinking (they are) a new discretionary fund or someone who's taking a new position," the trader said.
In London, robusta futures finished weak with the Liffe September coffee down $24 at $1,853, after trading in a range from $1,850 to $1,884. In early trade, however, the market showed some strength from September options calls and the latest Commitment of Traders report providing some support, dealers said.
"Some frost protection September call buying. They're talking about cooler temperatures, end of the week," one trader said about early support that buoyed prices to the session's highs. A cold front has arrived in southern Brazil and will bring showers followed by falling temperatures to the main coffee belt, but no risk of crop damaging frost is expected, private meteorologists Somar said on Monday.
Brazil is the No 1 coffee grower. Much needed showers will help replenish soil moisture levels in Parana, Sao Paulo and the Cerrado region of Minas Gerais state through Wednesday, Somar said in a daily coffee weather bulletin.
In arabica coffee, the weekly US Commodity Futures Trading Commission report released Friday showed noncommercials or speculators were net short 5,010 arabica coffee futures lots in the week to July 17 against 2,938 lots previously. NYBOT estimated 3,410 lots traded in New York open-outcry, while traders estimated 13,400 traded on the ICE electronic platform by 1:10 pm EDT.
This compares to the 1,675 lots officially tallied in floor trade on Friday, when a light 6,484 contracts traded on the ICE screen. In related news, Starbucks Corp said it was delaying a plan to begin opening coffee shops in India later this year. It did not give a reason for the postponement.