Arabica coffee futures rallied Thursday on speculative short covering. The action was encouraged by the strengthened of the July-Sep switch ahead of option expiration and the first notice day for the July position. The contract with most of the activity for July delivery settle 440 points higher at 183.05 cents per pound. Volume increase has been noted the last few sessions, a total of 49,350 lots were traded today including 14,505 switches. Both stocks and commodities gained today after the debt ceiling deal moved through the House of Representatives to the Senate overnight. The Dollar index corrected trading below the last 5 sessions lows with a new low of 103.43. The Brazilian Real and the Colombian peso also corrected finding additional strength along with crude oil. The certified stocks fell by 9,075 bags to 574,443 bags. Pending grading 0.
Robusta Jul23 contract settled at $2605 +49 with a 2619/2526 range. Robusta found speculative buying which was triggered by a short covering rally in Arabica. The fact of the matter is there are very few sellers in Robusta, with origin already very well sold. Any significant buying hits vacuums of selling allowing it to rally in the way that it did today. Structure also strengthened with commercial buying coming into the Jul/Sep. We saw decent volume on the front month spread today 5.3k lots trading between 33/40. Jul23 2400 put traded 500x @ 8, Jan24 2000 put traded 250x @ 34.
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Arabica coffee futures closed higher on Wednesday due to speculative short covering. The contract with most of activity for July delivery closed 155 points higher at 178.65 cents a pound. Short-term speculator selling at the beginning of the session failed to attract good participation, thus generating short covering. The open interest increased 2,351 lots as of yesterday evidencing the new shorts. Prices in oversold terrain and near the 175-support level, encouraged the action. Commodity markets were under pressure due to the strength of the dollar and the weakness of the energy complex. The Brent oil lost 1.0% trading at $72.00 a barrel. Latin American currencies devaluated, with the real falling to the lows of the last two months to BRL 5.1273, as well as the Colombian peso which fell to COP 4.453. The certified stocks fell by 9,116 bags to 583,518 bags. Pending grading 0.
Robusta Jul23 contract settled at $2520 unchanged with a 2564/2536 range. Slow day with very little volatility. Speculative activity was almost non-existent, light origin selling was seen early in the session but not aggressive. Basis 2nd month the psychological 2500 remains firm support. Jul/Sep continues to operate with in the recent range eventually settling unchanged at +36. Jul23 2250 put traded 350x @ 4. |
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