The arbitrage between Arabica and Robusta coffee futures widened again today with both markets closing more separated. Arabica futures closed higher while Robusta ended lower. The contract for July delivery of the “C” Arabica market closed 320 points higher at 191.60 cents a pound. Volume remained low with 26,310 contracts traded including 6,664 switches. With no fundamental news, the action was mostly driven by short-term players following technical signals. The weakness of the dollar contributed to support coffee prices. Commodity markets were generally lower overall influenced by oil prices which lost 3.3%, with the Brent trading below the key level of $80 a barrel to close at $77,80 per barrel. Signs of slowdown in the economy affected the sentiment. Certified coffee stocks were unchanged at 698,868 bags. Pending grading stocks remain at 0.
Robusta Jul23 contract settled at $2419 -25 with a 2442/2396 range. Market was certainly taking a breather after the impressive pre-FND rally that was observed yesterday. Flat price opened a touch softer but quickly found sellers into a vacuum of buying leading to a daily low print of 2396 early on the session. The rest of the day saw a small recovery off the lows but still unable to get back in the green. May23 OI still sits around 5k lots. Spreads down the board remain in backwardation however all seemed to soften today, Jul23/Sep23 saw a 26/31 range settling at +28 on 2.5k lots. Sep23 2200 puts vs 2400Δ26 traded 3000x @ 56.
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Arabica coffee futures fell on Tuesday pressured by spec selling. The July contract closed 505 points or 2.6% lower at 188.40 cents a pound. The long liquidation was prompted after the release of the open interest that evidenced the adding of new longs as it showed an increase of 1,426 contracts. The July position traded down to 187.05, attracting solid selling as it broken easily the recent support at 190. Without fundamental news, the stronger dollar and weaker Brazilian real added weight on the prices. Commodities were mostly lower with the crude oil falling 2.2 % to $ 80.88 per bbl. Arabica certs were unchanged at 699,508 bags. No coffee pending grading.
Robusta Jul23 contract settled at $2419 -25 with a 2442/2396 range. Market was certainly taking a breather after the impressive pre-FND rally that was observed yesterday. Flat price opened a touch softer but quickly found sellers into a vacuum of buying leading to a daily low print of 2396 early on in the session. The rest of the day saw a small recovery off the lows but still unable to get back in the green. May23 OI still sits around 5k lots. Spreads down the board remain in backwardation however all seemed to soften today, Jul23/Sep23 saw a 26/31 range settling at +28 on 2.5k lots. Sep23 2200 puts vs 2400Δ26 traded 3000x @ 56. |
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