Arabica coffee futures for December delivery settled 150 points higher at 213.35 cents a pound. Activity remained light. Speculative short covering was prompted after traders perceived support below the 210-price area, with the weekend and limited origin selling encouraging the action as well. The continuing strengthening of the dollar weighed on the commodity prices during the week. The December contract lost 8.85 cents or 3.97% during the week. Certs stocks increased by 13,905 bags to 610,680 bags. Pending for grading increased 18,045 to 228,486 bags. Grading today: 20,198, passed 15,608, failed 4,590. The spreads traded in an ample range. The Sep/ Dec finished today at 2.5 cents as the buying eased. Last week, it traded up to 5.45 cents. Technical lost some momentum after the strong previous week performance. However, support against the lower band of the Bollinger and values near oversold conditions may attract fresh buying.
COT (CIT) Non-commercials increase net long position by 2,792 to 18,849 net longs in week to August 16. Robusta NOV22 contract settled at $2218 -6 with a 2242/2218 range. Very slow day with NOV22 seeing an inside day range. Volumes low 6.7k lots traded on NOV22. The only real excitement came on the open where a large clip of SEP/NOV traded on a very thin order book causing the spread to trade to +15 eventually settling at level money, likely suspect was an algo getting stopped / bailing on a bad position. Couple of chunky CSO’s went through on NOV/JAN 1000x 40/80 cs traded @ 7 with another 1000x trading vs the 20 put.
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The Arabica coffee market for delivery in September closed 190 points lower at 217.45 cents per pound. With no further news, and with only four business days remaining before the start of the delivery period, dealers focused on squaring the books. Origin sales remained tight and may come under more pressure in coming
sessions if prices weaken. The dollar traded slightly higher putting weight on Latin American currencies. Currency traders and investors preferred to stay a little on the side of the market while waiting for the minutes of the last FED meeting in July In the minutes, published in the afternoon, central bank officials said that the agreement to raise the rate by 75 basis points was unanimous, adding that the pace of the next ones will depend on future economic data, but suggesting that at some point it will be need to slow down the pace. Arabica certs stocks increased by 4,130 bags to 581,342 bags, Pending declined 12,300 bags to 226,129 bags. Grading today: 30,711; passed 27,520. Failed 3,191. Robusta NOV22 contract settled at $2224 -4 with a 2253/2214 range. Bit of a stalemate between buyers and sellers today, but if anything, a lower high and a lower low print may trigger some small technical selling. Decent volume going through on NOV22 12k lots, 4.6k SEP/NOV being rolled between -4/-9. JAN/MAR 40/0 fence CSO traded 3000x new position we saw this same strategy traded 5250x on the NOV/JAN so I would expect to see some more volume on that going forward. |
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