Arabica futures for December delivery settled 5 points higher at 235.25 cents a pound. Volume reached 26,444 lots including 7,209 switches. The active Dec22/Mar23 switch gained 50 premium trading to a high of 6.90 cents, near the recent high for this structure. Firm differentials and the possible tight supply of fresh coffee is causing the steepened of the spreads. A good example the Dec22/Dec23 settled at +18.40.
Commodity and equity markets continue under pressure. The Brent declined 3% trading at $96 per barrel and the major stock indices were losing 0.3% during the early hours. During this month, Arabica futures gained 10.1%. Weather concerns in Brazil supported the market that was accompanied by a solid technical performance. Certified stocks increased by 591 bags to 672,585 bags. Pending certification fell by 20,917 to 69,222 bags. Today 25,649 bags were classified, 16,810 bags passed and 8,739 failed. The NY market will be closed on Monday due to Labor Day holiday Robusta NOV22 contract settled at $2250 -11 with a 2285/239 range. With the absence of fresh news and / or fresh buying Robusta continues to drift lower back into the middle of the most recent consolidation area. Volume was poor on NOV22 flat price with just over 5.5k lots trading. Another choppy day for NOV/JAN on small volume 11/20 range on 1.4k lots. The interest today was again the CSO market, 2300 lots of the MAR/MAY 40/-10 fence traded at $3. The NOV/JAN 40 call traded 1500x @ $8 (possible unwind) or adding to the 7.2k OI will wait and see tomorrow. Support level remains 2220 area yet to be tested on this move lower.
0 Comments
Arabica coffee futures ended lower on Tuesday, but performing relatively well compared to other markets, which saw extensive selloffs from equities to energy and agricultural commodities. The contract for December delivery closed 140 points lower at 235.20 cents per pound. The volume reached 27,513 lots, including 6,237 switches. The market rallied in the morning hours, however after failing to break above the 237 level twice in the last 2 hours, speculators opted to liquidate positions. We could expect some bearish sentiment in the coming sessions as weather models start to show a change for Brazil. After 60 days with well below average rainfall across the main coffee areas, there are several models showing increased rainfall from the end of next week. Also, prices are in overbought terrain are more vulnerable to a possible correction to the support level at 230. The dollar eased a bit but remained close to recent highs. Latin American currencies weakened. The Brazilian real was trading at BRL 5.1120 or down 850 points and the Colombian peso at COP 4,414.06 losing 53.00 points against the dollar. Certified stocks increased by 8,120 bags to 671,994 bags. Pending certification fell by 20,923 to 90,139 bags. Today 25,623 were classified, 20,821 bags passed and 4,732 failed. No delivery notices were issued for the September contract.
Robusta NOV22 contract settled at $2261 -18 with a 2306/2254 range. Choppy day but eventually we have given back all the gains from the rally last Wednesday. Coming back into that area of consolidation (2270/2215). With commercial selling noted from the open, scale spec follow through buying did not allow for the price to drift lower. Nov/Jan also traded a wide range on poor volume 14/23 range on 1.3k lots, settling at +16. Option wise fairly dead, some NOV22 2100 calls being rolled to JAN23 200x. |
|