NYBOT arabica coffee futures settled on Tuesday at a fresh 3-week low on speculative and options-related sales, although brisk roaster buying pared losses in the market and should help coffee consolidate in the days ahead, brokers said.
Key September arabica eased 0.70 cent to conclude at 67.95 cents a lb, ranging from 67.80 to 68.40 cents. It was the lowest close for coffee on a spot basis since ending at 67.80 cents in July 2004.
December fell 0.75 to 71.25 cents. Distant months retreated 0.55 to 0.70 cent. Rodrigo Costa of FIMAT Futures USA said fund selling was offset somewhat by roaster buying and steady options-related purchases in the trading pit.
"We just drifted lower and lower, but ran into pretty decent roaster buying at the lows," a floor dealer said. Coffee lost ground from the start of business as harvest pressure from leading producer Brazil kept the market on the defensive.
The trade ranging from 40 to 45 million (60-kg) bags of coffee estimates the Brazilian coffee crop. On the weather front, forecaster Meteorlogix said the Brazilian coffee belt should be mostly dry and mild.
Final estimated volume reached 10,249 lots, versus on Mondays count of 14,281 contracts. Call volume hit 6,018 lots while puts stood at 3,441 contracts. Open interest in the arabica coffee market rose 184 lots to 89,818 contracts as of July 26.