Arabica coffee futures rallied today as aggressive short covering boosted the market to the best close since April 19. The prices continued to be supported by commercials rolling positions ahead of the first notice day for the July position, June 22nd, as well as the strong technical action. The most active contract for July delivery settled 945 points or 5.09% higher at 194.85 cents a pound. The volume reached 88,987 lots, including 30,894 switches. The July- September switch gained 80 points to settle at 4.50 cents, reflecting the firm interest buying of the structure. The market remains inverted up to March 24. With the Brazilian market on holiday and other origin selling very limited, the rise in prices found practically no resistance. The rally accelerated when the market exceeded previous highs at 188, 190 and 194.4 levels. Arabica certs fell by 2,985 bags to 552,221 bags. Pending grading 0.
Today was yet another day of strong performance in the Robusta market in London. The July contract settled at $2760, up a whopping $86 from the previous close. This was the highest level the market has seen in 12 and a half years. The tight supplies of Robusta beans in both Vietnam and Brazil provided support for the market. Vietnamese dealers continued to be reluctant to commit to forward sales, as demand for Robusta beans remains high.
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Arabica coffee futures for July delivery settled 280 points higher at 185.40 cents a pound. Activity was boosted by spreads trading. Volume reached 77,372 bags including 25,648 switches. The most active July-September switch was traded within a wide range reaching a premium of up to 4.15 cents. Short players have been forced to roll positions to the back months before the beginning of the delivery period in June 22. The expiration of the July’s option on Friday added worries. In addition, several factors contributed to add support to today’s rise. Forecasts of a cold front arriving to Brazil next June 19-20, that could cause temperatures to drop possible below 5°C degrees for the southern regions of Minas are a reminder of the cold season. The USDA report on the Brazilian crop published last night, added concerns of possible Robusta shortages. The dollar declined, boosting Latin American currencies. ICE certified inventories dropped 2,098 bags to 555,206. Pending grading 0
Robusta Jul23 contract settled at $2674 +60 with a 2677/2618 range. Robusta continues its charge breaking out to the upside, with this we are starting to uncover some origin selling further down the board in particular on the Nov23 contract, its light but more than we have seen of late. The main driver being speculative buying which is becoming more attractive to hold due to the firm structure. Jul/Sep also had a bounce off the lows trading 9k lots between 30/39 eventually settling at +38. Jul23 2500 put traded 500x @ +11, Jan24 2050 put traded 1000x @ +34. |
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