Commodities
Arabica Has Biggest Jump in Three Weeks Ahead of July Delivery
- Premium commanded by July futures against September widens
- Investors monitor dry weather and cold in top shipper Brazil
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Arabica coffee futures jumped the most since late May in New York ahead of the expiration of July futures, with a rare premium for prompt supplies hitting the highest in over a month.
The move occurs as Thursday is the first notice day, when holders of futures must notify counterparts about their intention to access physical delivery against the contract. That is seen spurring some traders to cover short positions, even as the amount of outstanding contracts for that expiration is low.