Coffee, page-26

COFFEE
General Comments: Prices were higher on forecasts for more rains in Arabica areas of Brazil. The rains would further complicate an already difficult harvest and add to problems for the Coffee producers there if they appear, but they are not part of any forecasts we have seen. Brazil is still suffering from the previous weather problems. The crop maturity has been reported as uneven, and this has made harvesting very difficult. Brazil producers remain reluctant sellers due to the strong Real against the US Dollar. Rains are good in Mexico and Central America, and crop condition has greatly improved. Producers in both areas hope for some very good crops this year. There have been some reports of variable precipitation in Central America and nota ll producers are expecting big crops. No real problems are heard in Colombia or Venezuela, but there is some concern of less production due to dry weather earlier in the year.

Overnight News: Certified stocks are lower today and are about 1.309 million bags. The ICO composite price is now 131.49 ct/lb. Brazil will get dry conditions. Temperatures will average above normal. Colombia should get scattered to isolated showers. Central America and southern Mexico should get mostly dry conditions. Temperatures should average near to above normal. ICE said that 0 delivery notices were posted against July contracts today and that total deliveries for the month are now 234 contracts

Chart Trends: Trends in New York are mixed to up with objectives of 151.00 and 164.00 September. Support is at 142.00, 138.00, and 1354.00 July, and resistance is at 147.00, 150.00 and 153.00 July. Trends in London are mixed. Support is at 1700, 1670, and 1650 September, and resistance is at 1750, 1790, and 1810 September. Trends in Sao Paulo are mixed. Support is at 168.00, 164.00, and 161.00 September, and resistance is at 172.00, 173.00, and 177.00 September.