September arabica coffee (KCU26) on Friday closed down -13.65 (-3.92%), and September ICE robusta coffee (RMU26) closed down -191 (-4.72%).
Coffee prices settled sharply lower on Friday, continuing the volatile price swings seen this week. After Intercontinental Exchange (ICE) raised margin requirements for trading coffee futures twice this week, liquidity has dried up, prompting many commodity funds to close their positions and leading to excessive one-way price moves.