ICE coffee futures got off to a slow start this week and traded mostly lower. Abundant inventory on the physical market capped gains. The Arabica futures market saw switch related selling as the December contract became active. The Green Coffee Association reported highest levels of US green coffee stocks since September 2009, up 400,139 bags to 5,187,449 bags during the month of July. ICE exchange inventory is up by 4% for the month of August. This sizeable increase in US green coffee stocks is noted as the main reason for the market drifting lower. Traders are looking forward to the first notice day for the September contract on August 23rd to see what direction the market takes. In London, the Liffe Robusta market was trading mostly lower, with the majority of the activity centered on the upcoming spread. Heavy options selling were seen ahead of the September options expiration date this past Wednesday. The Robusta future market also saw origin selling from Vietnam and Indonesia this week. The ICE/LIFFE arbitrage has narrowed this week as ICE Coffee continues to slide lower. Macro factors such a positive US economic data have also impacted the market.