Arabica coffee futures corrected lower Friday but remained inside Monday’s substantial 1,365 point range. The December contract settled 415 points lower at 221.55 cents a pound. Volume was moderate through the week. A total of 33,877 contracts traded today including 8,989 switches. The nearby December -September switch ended at 9.00 cents premium. Markets keep measuring concerns about a global recession an escalating conflict between Russia and Ukraine. The dollar index made new highs mid-week but corrected on Wednesday after reaching the high of 114.74. The British pound strengthen earlier in the week, along with the euro. In Latin America, the real breach lower on Monday and consolidated near 5.40 for the remaining of the week. The Colombian peso continues to weaken reaching a low of 4607 near the lows of the last 3 months. The certified stocks decrease 9,229 bags to 426,180 bags. Pending 640 bags. No grading today. A total of 45,826 bags were withdrawn from the exchange this week.
In Robusta the overnight Fed comments naturally generated a negative premarket sentiment, with the speculative community focused on U.S. stocks printing a 22-month low. Values opened $6 down and swiftly attacked the lower Bollinger band average at $2164 basis Nov22 and then the previous day’s low at $2159 amid thin volume as primary focus remains firmly Arabica based. Although the follow through selling was light the natural buyers were not seen through the day’s price bracket, which saw values unable to stage any type of sustained recovery ending the day just shy of the intraday low at $2151.
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Arabica coffee futures closed lower at the end of a session dominated by short-term specs. The benchmark contract for December delivery settled 300 points lower at 225.70 cents a pound. The nearby Dec/ Mar switch lost 0.25 cents premium to end at 8.85 cents premium. Today volume was boosted by 7,609 switches. The possible shortage of fresh coffee and the fall of the cert stocks have generated great interest in the nearby structure. The weakened of the LATAM currencies put some pressure on the coffee market today. The real of Brazil added loses of 0.5% to BRL 5.3900, the lowest level in two months, even as data showed an improve of the economic growth outlook for 2022 and better jobs creation. However, the result of the presidential election this Sunday is concerning the investors. The Colombian peso declined 0.9% to COP 4522. Certified stocks decreased 9,290 bags to 435,409 bags. Pending grading: 640. No grading today.
In London, the November Robusta market finished $ 26 lower or 1.2% at $ 2,182 per ton. Activity remained slow. The market remains inside a small range, with the specs selling as prices failed to exceed previous session high. From Vietnam, coffee plants did not suffer damage from the Typhoon Noru this week. Coffee exports are estimated to have increased 13.7% year on year during first nine months, reported REUTERS. |
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