ICE Coffee Review: Eases; Brazil Rainfall Monitored

INO News

Pit-traded arabica coffee futures ended lower Friday on ICE Futures U.S. after speculators took profits when origins clipped a rise through Thursday's high, brokers said. Brazil's weather outlook has improved with rain in the forecast, but it's unclear if the nation will get enough moisture for a successful October-November tree blossoming.

ICE pit December closed 40 points lower at $1.25 a pound after an early rise to $1.26.

"Speculators did some selling today and the screen weakened after the pit closed, but it's in much lighter volume than yesterday," a New York desk manager said. "No one can make any pronouncements about Brazil's crop yet because we don't know how much rain they'll get. I've seen pictures of trees that look good and pictures that look bad."

Meanwhile, a growing portion of Brazil's coffee production is irrigated - possibly as much as 30% of groves, he estimated.

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