Arabica coffee futures closed higher Wednesday as the strong technical performance continue to fuel the corrective rally. The most active contract for December delivery settled 755 points higher at 182.15 cents a pound. The volume was moderate reaching 47,459 contracts including 15,019 switches. A weak dollar ahead of the interest rate decision by the FED contributed to add support to the coffee prices. The strengthened of the structure added support reflecting concerns about the availability of fresh coffee for prompt delivery. The near December / March switch gained 80 points to end at 5.50 cents. During the last 30 days this structure has attracted large speculative participation as it traded in a range between 10.60 and 1.65 cents. Certs stocks remained unchanged at 384,795 bags. Another 20,080 bags arrived for grading for a total of 141,530 bags at Antwerp and 646 in Hamburg. No grading today.
Robusta JAN23 contract settled at $1882 +43 with a 1831/1887 range. Robusta basically shadowed Arabica for much of the day with little commercial activity on either side. Some light origin selling noted late on in the session. 13K lots of JAN23 changed hands today with less than 2k lots on the JAN23/MAR23 going through between +11/+22. Does seem as though flat price is trying to find a new equilibrium with whippy days expected until we find a new range, or a strong fundamental story emerges. Jan23 1900/1750 put spread vs 1878Δ30 TRADES 3,650x @ 59 Jan23 1950/1750 put spread vs 1875Δ40 trades 3000x @ 9
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Arabica coffee futures for December delivery settled 310 points lower at 174.60 cents a pound. The activity was dominated by short term specs. Prices stalled after an early rally failed to attract solid buying. The rains in the main coffee areas for Brazil continue to normalize. October ended with accumulations near or above the historical average with a couple exceptions. Heavy rains are forecasted for the next days across the eastern coffee areas. Arabica cert stocks in ICE authorized warehouses remained unchanged at 384,795 bags. Pending grading increased 20,152 bags for a total of 121,450 bags in Antwerp and 646 bags in Hamburg. Brazil's real hit a four-week high due to some optimism about political stability after the elections. The Colombian peso fell to new historic lows trading COP 5,011.50. Traders are focused on the expected hike of 75 basis points for the interest rate by the FED tomorrow.
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