Arabica coffee futures closed lower again as selling by speculators and traders continued to put pressure on prices. The most active contract for December delivery closed 410 points lower at 166.45 cents a pound. The selling mostly against the spot position reflected producers' fixing contracts before the start of deliveries for the December contract on November 21st. At the same time solid selling of the near December/March switch added weight on the market. This switch lost 2.20 cents premium to finish at 2.30 cent near the lows for this structure. A large volume of coffee entering ICE warehouses for certification has fueled the bearish sentiment recently. Today the certified stocks increased by 20,079 bags to 426,717 bags. The pending grading increased by 48,922 bags for a total of 204,774 bags. A total of 28,040 bags were graded today, 20,329 passed and 7,711 bags failed. Robusta JAN23 contract settled at $1831 -20 with a 1868/1827 range. Another day of lower highs and lower lows. Still within recent range of 1815/1900. Spec selling into little commercial buying prompted by specs also selling Arabica. Volumes have almost halved over the last few days with just over 5.7klots trading on the most active contract. Jan/Mar saw a 13/19 range on <2k lots. Traded 250x @ 5 Jan23 2200 calls vs 1832Δ4.
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Arabica coffee futures fell on Monday at the end of a session dominated by spreads trading. The most active contract for December delivery settled 520 points lower at 170.55 cents a pound. The short-term specs took the initiative as soon as they noted price weakness against Friday’s high. The selling accelerated when prices
breached the 170-price level, however the market bounced for the close as there was no follow-through on the selling. Good volume of spreads added pressure on the structures that continue to lose premium, particularly in the back of the curve. Arabica certs increased 3,191 bags during the last week, but still remain at 23 years low. A total of 90,021 bags arrived for grading in Antwerp. Robusta JAN23 contract settled at $1851 -18 with a 1882/1833 range. A day full of whipsaw, trying to test higher in the early session but unable to get any traction. Some light origin selling seen in the morning but no real roaster buying to support the market as we drifted lower. Currently flat price is stuck in a new 1800/1900 range with little fundamental fresh news to break this. Macro / Spec selling was the main driving force. Volumes were almost half what they have been with only 5.9k lots trading on F3 contract. F/H had a 17/25 range on 1k lots. Mar23 1800 puts vs 1846Δ40 traded 300x @ 72 |
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