Arabica coffee futures had appeared to become exhausted to start the week, returning most of the gains from last week on yesterday’s long liquidation session. The NY market continued to hold above the 20 day moving averages today during the early hours. After no fuel was added on the shorts and the Brazilian Real recover some strength, Arabica slowly started gaining ground to the upside discovering fresh buys after breaching 171.60 triggering the march contract pass all resistance levels and breaching the December 1st high of 174.35. New target points at 178.20 a two-month high as Arabica starts to drive into overbought territory on the daily chart. The most active contract Mar23 gained 660 points to settle at 173.55 cents a pound. Volume was light to moderate with 26,622 lots traded including 5,324 switches. Arabica certs stocks increased by 10,750 bags to 797,755 bags. Pending grading: 257,153. Grading: 15,042 Passed 11,536. Failed 3,506.
Robusta MAR23 contract settled at $1869 -6 with a 1889/1853 range. Choppy day between key technical levels. Origin activity was present and more aggressive than previous sessions. Market continues to operate in a 1850/1890 range. As expect for the time of year volumes were on the low side with only 7.3k contracts trading on the most active month. No notable option activity. Story remains the same any spec buying / short covering runs into a thick layer of origin selling.
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Arabica coffee futures closed higher on Tuesday in a quiet session. The benchmark contract for March delivery settled 350 points higher at 167.80 cents a pound. Activity remained slow with 23,958 lots traded, including 5,050 switches. Specs short covering lifted the market following the opening, as limited selling was revealed. The Latin American currencies were firm discouraging commercial selling that typically is absent at this time of the year. The dollar slipped after the Bank of Japan expanded the cap for the 10-year bonds by 50 basis points. In coffee’s technical, despite oscillators are with neutral values, the proximity to the lower band of the Bollinger added some support. The certified stocks increased by 10,073 bags to 775,656 bags. Pending grading: 289,816 down 9,326. Grading today: 13,350 bags. passed 10,073, failed 3,277.
Robusta MAR23 contract settled at $1871 with a 1873/1851 range. To be expected another slow day with flat price rallying off technical support at 1854 base H3. Origin selling was still present scale up but not quite in the volumes we have seen in previous sessions. This was reflected in the flat price which only traded 8.7k lots on the most liquid contract. No surprises that JAN/MAR continued to push new highs with a 80/91 range on 2.4k lots as shorts struggle to find volume to roll the position. Mar23 2025/1800 fence (to the put) vs 1870Δ52 traded 1000x @ 15, Jan23 2000/1950 put spread traded 1000x @ 36, Jan23 1950/1975 call spread traded 1500x @ 12. |
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