As fundamentals continue supporting the New York “C” market, commercial and speculative buying boosted the prices today to a fresh six-week-high. The benchmark contract for September delivery closed 350 points higher at 223.95 cents a pound. Commercial activity was substantial as rolling of shorts and industry buying accumulated ahead of the first notice day for the September position, August 23rd . Good support below the 215 level (Sep position) and the breaking of the recent resistance at 222, encouraged the spec buying. Temperatures in Brazil coffee areas have been cooler than normal, but the frost threat is very low. However, weather services advise for a new cold front to be monitored that will surge next Friday. Analysts at Citigroup reduced the 2022/23 global surplus to 1.7 m bags from 3.2 m bags they foresaw last June reported Bloomberg. Abnormal weather patterns in Brazil, Colombia and Honduras can affect the outputs in these countries. Lack of adequate fertilization has contributed to reduce the prospects for the upcoming Vietnam crop. Certified stocks declined 20,054 bags to 571,905, meanwhile the pending for grading added 30,080 bags to 194,162 bags. No grading today.
In London, the Robusta market closed at thigh level since February, with the September position closing $ 71 higher at $2216 a ton, and the November $74 higher at $ 2223 a ton. The availability of coffee in Vietnam is tight and local prices rose this week. It has been difficult for exporters to fill contracts during the last weeks. Farmers are holding stocks until the new crop that will begin in November. Robusta prices has been supported also by low exports of Brazil. Local roasters and soluble industry are buying most of the coffee available. Robusta exports during July fell 60 % reported CECAFE.
0 Comments
Coffee Settle Firm on Cold Weather Concerns
ICE ARABICA The Arabica coffee futures market for September delivery closed 465 points higher at 219.30 cents per pound. Commercial buying and short covering supported the move. The forecasts of the cold front that is approaching next week to Brazil, despite being a bit erratic, have created concern among the participants. Today some meteorologists issued an alert for next August 10 and 11 when they observe that the passage of the polar mass over Santa Catarina and Parana. The volume reached 55,332 contracts, boosted by 18,141 switches. Good buying interest increased the structures premium especially December-March which ended at +560. Certified inventories fell 29,902 bags to 665,933 bags. Pending grading remains at zero. Robusta SEP22 contract settled at $2045 +19 with a 2014/2052 range. For the last 4 sessions flat price seems to be trapped between the 40ma and 2056 area (100ma @ 2065). Not able to breakout but finding technical support at 2017. The difficult market continues whipping short term traders about. Even with NY up 4 cents+ this wasn’t enough of a reason to break the range. Volumes dropped off today with only 5k going through SEP22. 3000 SEP/NOV traded between 0/8 pushing the highs into the close. No notable option trades. |
|