Arabica coffee futures for March delivery closed 220 points lower at 162.85 cents a pound, affected by concerns over China's weekend unrests and protests against the COVID lockdown policy. The volume barely reached 18,433 lots including 3,832 switches. Other markets in the softs complex, such as sugar and cotton, lost ground, while cocoa finished unchanged. Latin American currencies rallied bit despite the dollar showing strength. Brazil's real ended 0.5% higher at BRL 5.3743, and its Colombian pair 0.5% higher at COP 4,830. Today the certified stocks increase by 7,915 at 565,853 bags. The pending grading decrease by 11,900 bags for a total of 505,069 bags. Total graded 13,145 bags, Failed 5,230, Passed 7,915.
Robusta JAN23 contract settled at $1855 -2 with a 1868/1843 range. Quiet low volume day. Origin was layered above the market and with no real speculative activity Robusta could not get above Fridays highs. Volumes on flat price were low with 6k lots of Jan23 trading, Jan/Mar continued to test new highs with a 38 print (shorts getting out of JAN23) but settling unchanged at +29. Robusta Coffee Future - ICEU - Buy Jan23 1750 puts - Buy Mar23 1950 calls - Buy Δ16 Jan23 1860 - Sell Δ30 Mar23 1828 traded 1050x @ 48, Robusta Coffee Future - ICEU - Jan23 1950 call traded 1000x @ 15.
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Arabica coffee futures closed higher today at the end of a quiet session. The benchmark contract for March delivery closed 430 points higher at 164.70 cents a pound. Speculators buying was buoyed by the technical performance as the upside was unobstructed without no sales from origins and funds for the time being. Equity and commodity markets were stable. Dollar down 0.5% and mixed Latin American currencies. The real fell 0.7% to BRL 5,3666, while the Colombian peso rose 0.6% to COP 4,904. Tomorrow the FED will release the minutes of the last policy meeting of Nov1-2, that will give hints of the pace of the interest rate hikes. Certified stocks rose by 16,916 bags to 530,105 bags. Pending grading: 543,512 bags. Graded today 21,231 bags. 16,916 passed, 4,315 failed.
US markets will be closed Thursday in observance Thanksgiving Holiday. Robusta JAN23 contract settled at $1834 +22 with a 1839/1816 range. 2 days of short covering in Arabica is certainly bringing small buying / short covering into Robusta. Unlike Arabica however a lot of that buying is being absorbed by a layer of origin selling. JAN/MAR continues to remain firm closing on the daily highs at +30 with a 22/31 range on 3.3k lots. The JAN/MAR 0 put CSO traded 3500x @ 5. |
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