Arabica coffee futures briefly extended to the upside on previous session momentum. The main contract May24 made the high at 184.40 at the beginning of the session but opted to return to the consolidation area of yesterday and a settlement confirming this consolidation -65 at 182.40 cents a pound. Volume was slightly lower today with a total of 38,878 lots including 10,630 switches. A subdued day for coffee as expected given that the holidays are approaching and today is Fed Day on Wall Street the day in which we learn how sentiment among policymakers serving on the Federal Open Market Committee has changed regarding monetary policy. The Federal Reserve’s biggest challenge today is to accurately communicate a message that will drive sentiment among both consumers and Wall Street traders in a way that will help reach its goal. Certified stocks increased 12,500 bags to 544,766 bags. Pending grading decreased 12,375 bags to a total of 106,012. Today’s grading summary: 21,475 total bags graded, 13,195 bags passed (6,045 BR, 6,325 GT, 550 MX, 275 PE) and 8,280 failed (3,880 BR, 2,475 GT, 550 MX, 1,375 PE).
Robusta May24 contract settled at $3315 -39 points or -1.16% down with a 3379/3301 range. Market struggled to hold pace with no follow through buying seen. Commercials were noted as scale down buyers. Holding pattern of 3250/3380 remains intact. With very little fresh news participants seem reluctant to add new positions and the bulk of the intraday volatility comes from the speculators. Firm structure continues to portray the state of the tight physical arena. May/Jul saw an 86/96 range on 2k lots. Robusta May24 3200 puts vs 3360Δ28 traded 1000x @ 51, Robusta May24 3500 calls vs 3356Δ30 traded 500x @ 66. Robusta May24 3450 call traded 750x @ 66
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Arabica coffee futures began a session testing lower accompanying the corrective move on Robusta for the early hours. After marking the low in May24 contract at 179.35, the NY market came in and with it, volatility was picking up. The market found good support above 180.80. For most of the session, the market traded both sides in a smaller range between 180 and 182, with some additional support in the last hour above this range. Arabica made new highs for the end of the session at 183.35, once again testing previous support that is now acting as resistance. Traders will remain vigilant for any activity and technical confirmation above these levels. Volume has been moderate to start the week with a Total of 44,488 lots including 10,796 switches. Certified stocks increased by 15,880 bags to 532,266 total. Pending grading decreased 36,243 bags to 118,387 bags. A total of 25,925 bags were graded today, 16,805 passed and 9,120 failed. Robusta May24 contract settled at $3343 +15 or 0.33% higher with a 3360/3284 range. A very choppy day with no clear direction. Commercials were reasonably active buying dips where possible providing support to flat price, origin are still absent. Flat price volume has seen a slight uptick with 9,972 lots traded on the May24 contract. Speculators continue to dominate the arena. Structure remains within the recent range May/July touch softer on the day seeing an 83/102 range on 3.4k lots. Robusta May24 3250/2950 putspread vs 3315Δ32 traded 500x @ 75. |
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