Arabica coffee futures closed slightly lower after making new highs not seen since Q3 2022. The contract with the most activity for May delivery closed 140 points lower at 211.10 cents per pound, reverting from early high of 216.40 cents. High volatility continued to affect prices. Short-term speculator buying boosted the market early, however profit-taking later knocked prices down. The selling was encouraged by technical factors such as overbought conditions that make the market very vulnerable to a correction, and the proximity to important resistance levels against the 220 area. The CFTC’s COT data published on Friday showed once again that funds continue to add long positions, now with a net long of 43,059 lots, while the short commercial position expanded by 12,540 lots to a net short of 98,353 lots. Certified stocks added 2,100 bags to 615,652 bags. Pending grading increased by 770 bags to 73,884 bags. Total graded today 4,990 bags.
Robusta May24 contract settled at $3742 with a 3793/3701 range. Early in the session flat price struggled to gain traction, under pressure from the weakening structure. May/Jul continued lower printing a new recent low of 51 eventually rally back to unchanged to print a high of 77 on 7k lots. Commercial activity was sporadic with a small amount of commercial buying seen scale down. It seemed the rally into the close was more short covering from earlier shorts going into the market rather than fresh longs or commercial pressure. Robusta May24 3750/3300 putspread vs 3776Δ44 traded 250x @ 82.
0 Comments
Arabica coffee futures closed slightly lower after making new highs not seen since Q3 2022. The contract with the most activity for May delivery closed 140 points lower at 211.10 cents per pound, reverting from early high of 216.40 cents. High volatility continued to affect prices. Short-term speculator buying boosted the market early, however profit-taking later knocked prices down. The selling was encouraged by technical factors such as overbought conditions that make the market very vulnerable to a correction, and the proximity to important resistance levels against the 220 area. The CFTC’s COT data published on Friday showed once again that funds continue to add long positions, now with a net long of 43,059 lots, while the short commercial position expanded by 12,540 lots to a net short of 98,353 lots. Certified stocks added 2,100 bags to 615,652 bags. Pending grading increased by 770 bags to 73,884 bags. Total graded today 4,990 bags.
Robusta May24 contract settled at $3742 with a 3793/3701 range. Early in the session flat price struggled to gain traction, under pressure from the weakening structure. May/Jul continued lower printing a new recent low of 51 eventually rally back to unchanged to print a high of 77 on 7k lots. Commercial activity was sporadic with a small amount of commercial buying seen scale down. It seemed the rally into the close was more short covering from earlier shorts going into the market rather than fresh longs or commercial pressure. Robusta May24 3750/3300 putspread vs 3776Δ44 traded 250x @ 82. |
|