Arabica coffee futures trickle down on sluggish volume as participants attend the SCA Expo in Portland, Oregon. The most active contract Jul23 July 23 settled 245 points lower at 191.45 cents a pound. Total volume of 24,885 lots, including 5,803 switches. OI + 1141 new shorts yesterday, most of the action focused on book squaring this week as the May23 contract went into delivery as of Wednesday’s close and now stands with only 590 OI. Market is easing as the pressure now shifts from the commercial short to the speculative long. The next objective could provide more support in the 182/185 area as the weekly close is indicating a probable longer-term reversal. Arabica-certified stocks are unchanged at 699,508 bags. Pending grading remains at 0.
Robusta Jul23 contract settled at $2382 +8 with a 2384/2358 range. Robusta remains stubborn not able break the 2400 level but also not shadowing NY lower. Daily volume was again lower today 13k total flat price, OI was a touch lower also, which both combined is not particularly bullish. One supportive factor is certainly the strength of the structure down the board. May23/Jul23 continues to see the commercial short paying up ahead of FND on the 25th Apr. 64/88 range on 1.5k lots settling at +83. Monday will be the last full trading day ahead of the May23 FND, OI still sits around 11k lots. Sep23 2300/1900 put spread traded 500x @ 102.
0 Comments
A general drop in the commodity markets and technical factors contributed to putting pressure on the Arabica coffee futures today. The recent commercial buying that had supported the prices recently ended. The active contract for July delivery settled 625 points lower at 193.90 cents a pound. Volume declined as usual after the first notice day. A total of 32,733 lots were traded, including 6,777 switches. A total of 254 delivery notices were issued last night for the May position. An expected corrective move in the coffee prices was triggered today as prices broke fresh support levels, with values overbought that contributed to adding weight. Commodities continue to fall over concerns of oversupply and global demand contracting. The price of Brent crude oil fell 2.8 percent to near $8 a barrel, a three-week low. Arabica-certified stocks fell by 540 bags to 699,508 bags. Pending grading remains at 0.
Robusta Jul23 contract settled at $2374 -12 with a 2392/2360 range. Flat price seems to be taking a breather around these levels, unable to find a sponsor through the 2400 level but also unwilling to give up recent gains. Daily volumes are decreasing with OI falling, not a particularly bullish combination. One thing that is providing some support to flat price is the strength of the structure. Switch May23/Jul23 remains strong trading up to a recent high of +90 on 2.3k lots. Two trading days remain prior to My23 FND, OI is 13.5k lots -8.8k from yesterday’s number. Jul23 2200/2000 put spread vs sell 2700 call traded 300x @ 8. |
|