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Wednesday, October 10, 2007

Coffee market update 10-oct

Arabica coffee futures fall yesterday as speculators took profits and the market run into trailing sell stops ater December failed to reach a target at $1.41 on Monday. Growing uncertainty abou the weather forecast and hence over the size of the next harvest are the key factors determining the market direction. Weather conditions remain dry, while the forecast calls for some light showers over the weekend. Yesterday the market reacted negatively to talks of possible rainfall in Brazil's top growing regions. If persistent rains fails to materialize today's pull back might proove to be shortlived, however one should remember taht the market is still very long and may be vulnerable to any talk of rain in Brazil.

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