MILAN – Coffee futures markets posted more gains on Wednesday: after a downward start, both terminals went up again, closing the day on a further recovery and at new historic highs. In London, the contract for November delivery gained $80, ending the day at a new all-time high of $4926 (intraday at $4944).
Dealers said the market was technically overbought and could fall back further in the short term. The market remained underpinned, however, by tight supplies exacerbated by farmers in Vietnam and Indonesia holding back coffee in expectation of higher prices, according to Reuters.
The Ice Arabica contract for December delivery gained 120 points to close at 256.45 cents, the highest level for the benchmark since February 2022. Continuing concerns remain about the situation in Brazil, where drought and rising temperatures could cause premature flowering, negatively affecting the next crop’s production potential.
The latest Commitment of Traders (COT) report from the New York market has seen the shorter term in nature Managed Money fund increase their net long position by 10.55% for the week ended Tuesday 20th August 2024, to a new long position at 57,468 lots.
The longer term in nature, Index Fund sector increased their net long position by 2.38% to register a new net long position of 49,168 lots.
Over the same week, the Non-Commercial Speculative increase their net long position by 11.59% to a new net long position of 43,474 lots, which is the equivalent of 12,324,686 bags.
