Arabica coffee futures settled at a two-week low Friday, sinking on long liquidation, pressure from the weak September/December spread and options-related dealings, traders said. The December coffee contract sank 3.70 cents or 2.7 percent to close at $1.3235 a lb, the lowest settlement since July 31. Session ranged from $1.3155 to $1.3685 per lb.
December volume reached 12,003 lots. The September contract dropped 3.80 cents to close at $1.2895 per lb. Arabica futures dropped on long liquidation and pressure from the weak commodity complex - traders. Weakening signs from September/December spreads, which widened this week, also put pressure on arabica futures - traders. The spot-month contract's first notice day is August 21, traders.
The market fell further, after September broke through the strike price $1.30, with September options expiring on the day, traders. Improved harvest weather in top grower Brazil also added some pressure, traders. Mostly dry conditions in top grower Brazil's coffee regions, with the chance of some light showers in far eastern Minas Gerais late Sunday into Monday - DTN Meteorlogix.
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