Arabica coffee had a volatile day on a small range and low volume. NY market tested both sides of the range sporadically eroding origin sales, also waiving out some late players on the move up while forcing some short covering. Weather in brasil continues to bring moderated to heavy rains between this Monday and Tuesday, episodes of moderate intensity rain are forecast, which could be accompanied by wind and hail, which can damage crops, after that the instabilities tend to advance towards the northern half of Brazil. The most active contract Mar23 settle 25 points higher at 168.15 cents a pound. The volume reached 21,586 contracts including 5,679 switches. Arabica cert stocks increased by 14,995 bags to 732,641 bags. Pending decrease 12,679 bags to 333,437. Grading today: 18,660 bags. Passed 14,995, Failed 3,665.
Robusta MAR23 contract settled at $1877 +5 with a 1885/1864 range. Inside day with little activity on flat price. Volume was 30% lower than Tuesday. JAN/MAR continues to trade firmer with a 23/38 range settling on the highs at +38. 9.9k lots of JAN/MAR CSO calls is open at the +40 strike so it’s hard to see how we soften from here, coupled with all the origin selling being placed vs MAR23. ZERO options traded on Robusta today.
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Arabica coffee traded in a 400-point range, significantly tighter than a previous day range of 1,305 points. The NY market extended the gains on the early hours after a slightly better than expected US CPI announcement. The most active contract Mar23 settle 85 points higher at 167.90 cents a pound. The volume reached 35,018 contracts including 9,033 switches. The Market keeps the near upside target at the upper Bollinger band today at 170.65 as we await the US FOMC rate decision tomorrow. Arabica cert stocks increased by 12,074 bags to 717,646 bags. Pending decrease 82 bags to 346,116. Grading today: 18,055 bags. Passed 12,074, Failed 5,981.
Robusta MAR23 contract settled at $1872 -12 with a 1888/1865 range. Fairly quiet session that went against the grain of the wider commodity markets. Wider markets were helped today with the lower US CPI inflation print but this was not enough to trigger a ‘’green’’ day for Robusta. Plenty of origin selling at current levels really weighed on flat price in particular the MAR23 contract. Volumes remain around the 10k mark on H3 which is around average for the last few sessions. JAN/MAR had a 15/29 range on 3.8k lots settling at +20 unchanged. Jan23 1950/1800 put spread vs 1895Δ69 traded 300x @ 59. |
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