Arabica coffee futures for the May23 contract settle 285 points lower at 172.60 cents a pound. The NY market continued the long liquidation from yesterday briefly testing below the 50-day moving average today at 172.00 and unable to test the area of 175/176 which has seen most of the activity in the previous sessions. It was another “risk-off” session overnight, as traders react to a report that Saudi Arabia will not invest more money into Credit Suisse. Traders are also reacting to this morning’s economic data release; The producer price index came better than expected. U.S. Jobless claims will be release tomorrow. U.S. green coffee stocks fell by 159,994 bags to 6.1 million 60-kg bags by the end of February, according to the Green Coffee Association (GCA). ICE Certified stocks unchanged at 785,577 bags: pending grading increase by 475 bags to 10,158 bags. No grading today.
Robusta MAY23 contract settled at $2069 -10 with a 2085/2051 range. Macro risk off selling was the main driver for today’s move. Origin were active sellers in the early part of the session but did not chase lower as we tested the lows. Roaster buying was also observed but not in any great size. Support was found at a key tech support level around 2072 basis May23. Volumes picked up with 11.3k lots of May23 going through, May/Jul was less active with 2k lots trading between 9/13. May23 2050/2150 call spread vs 2070Δ26 traded 3000x @ 41.
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Arabica coffee futures volume was noticeably low, with a total of 23,484 lots traded including 5,523 switches, making it the lowest this year. The May23 contract settle 375 points lower at 175.45 cents a pound. Resistance below the 8-day moving average today at 178.20 was noted from the opening bell, The NY market keeps the lateral move consolidating in the resent range of 170/181. The waters calmed a bit overnight ahead of this morning’s inflation data release. The consumer price index data came in pretty much as expected this morning, allowing Wall Street to give a big sigh of relief. Inflation is still a problem, but at least there weren’t any more surprises. The next two data announcements are the U.S. PPI and jobless claims on Wednesday and Thursday, respectively. Certified stocks increase by 2,875 bags to 785,577 bags: pending grading decreases by 3,350 bags to 9,683 bags. Grading today: 3,350 bags. Passed 2,875 bags. Failed 475.
Robusta MAY23 contract settled at $2080 -33 with a 2112/2079 range. Weak performance in Arabica dragged Robusta below recent lows. Commercial activity was light and more weighted to the sell side. Key technical support seen at 2068 base May23, a break blow that would trigger spec selling. Volumes remain low with 9k lots traded on the May23 contract, The switch May/Jul had an 8/11 range on 1.6k lots. May23 2200 calls vs 2098Δ26 traded 650x @ 26. |
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