Arabica coffee futures continue the upside momentum at a slower pace on smaller volume. Total volume was 39,575 including 8,138 switches. The NY market made new highs in the early hours on the way to the next area of resistance at 163. The daily range was tightly held between 159.00/160.50 for most of the session. The Arabica Dec23 contract settled with little change 45 points higher at $159.60 cents a pound. Markets take a slower pace as they await the Fed's projection for its benchmark interest rate, to be released on Wednesday. Dry weather patterns in brasil will be monitor in the coming weeks as prolong dry weather could provide additional support. The certified stocks added 2,200 bags at 448,113total bags. Pending grading is now at 16,835.
Robusta Nov23 contract settled at $2566 +10 with a 2610/2551 range. Another test through recent highs largely coming from speculative activity which was meant with little to no resistance from origin selling. The structure was unable to hold on to Fridays gains seeing a 121/157 range on 4.9k lots. A pull back in this spread has been long overdue but important to note the issues still remain. Robusta Nov23 2400/2250 putspread trades 1200x @ 17, Robusta Nov23 2400/2300 (1x2) putspread trades 1500x, Robusta Nov23/Jan24 200 call trades 1500x @ 14.
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Arabica coffee futures for December delivery settled 205 higher at 154.00 cents a pound. With commercial selling absent in the market the speculative buying boosted the prices easily. As market participants are focusing on the development of the next crop in Brazil, some concern has arisen among farmers as rains forecasted for this week has not materialize. CONAB will release their third survey of Brazil’s 23 crop next week but should have little impact as this has already been factored into prices. A weaker dollar supported the commodity complex in general. The crude oil rose to the high in this year as tight supplies overshadowed weaker economic grow. Saudi Arabia and Russia extended oil production cuts that could restrain the supply during the next months of seasonal high demand. Cert stocks were unchanged at 442,548 bags. Pending grading 19,820 bags.
Robusta Nov23 contract settled at $2495 +16 with a 2508/2451 range. Slow day with structure continuing its climb dragging flat price with it. Nov/Jan was the main point of action today, 108/133 range on 2.7k lots, this strength dragged flat price higher with very little commercial activity on either side. Intraday volatility remains high with the absence of any fresh fundamental news, speculators continue to create a noisy trading environment turning positions on a daily basis. Robusta Nov23/Jan24 CSO 150/100 fence (to the call) trades 500x @ 8, Robusta Nov23/Jan24 CSO 150/200 (1x2) callspread trades 500x @ 6. |
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