US nearby arabica coffee futures fell 2.9 percent on Friday to settle at their lowest in four months, depressed by speculative selling in sympathy with a sharp drop in London's robusta market, traders said. The New York Board of Trade's July arabica contract fell 3.4 cents to end at $1.13 a lb., the lowest settlement since February 3. September likewise fell 3.4 cents to $1.1635 a lb., marginally above the low end of a $1.1630-$1.1850 trading range.
Back month arabicas slid 3.30 to 3.40 cents.
"London crashed today, which got us to open lower," James Corridor, president of Liberty Trading Group, said, noting speculative participants were "running for the door."
Indeed, Life's benchmark September robusta plunged 7.1 percent to settle at $1,163 a tonne, extending its correction from a peak at $1,333 on June 6.
The slide in robusta prices has been the impetus behind New York's arabica market falling 10 percent since on Tuesday. Corridor reckoned a move in
NYBOT's most-active September arabica contract below $1.15 would likely trigger further speculative liquidation.