Coffee markets on both sides of the ocean continued to trade lower. Robusta suffered a gradual decline during the session without much volume to talk about. The market had some moments of uptick action, reaching the highs almost two hours into the trading day, but that was short-lived. The balance of the session saw a slight deterioration of the flat price until it reached, and held, last Monday’s low of 1807 in the 2nd position. The option pit enjoyed some activity with 1,000 lots of the K1900/1750 PS vs 2150C@ 73 and K1800/1650 PS vs 2000C @29 trading.
Arabica’s action ahead of December’s first notice day found the market taking more steps towards the bottom of the range. The front month lost the fight about half hour into the active trading period. Stops got triggered after crossing the lows of two weeks ago. Speculators rushed in adding selling pressure to the board but, once we hit the 125.00 area, the market felt secure. Good support was found at that level dating back to July. Last-minute rolling was noticeable with spreads vs December accounting for almost 12,000 lots of volume. The Dec/Mch roll weakened to -3.75 cents and, during the last thirty minutes of trading, late buying took spread back up to -2.35 cents. The move allowed the flat price to recuperate from the lows and helped it recover 1.35-cents.
LRCF8 settled $14 lower with volume estimated at 11,385 lots, including 3,905 spreads, 778 EFP's and 0 EFS's. 2,650 calls and 4,550 puts also traded. Open interest 116,139+2,222.
KCEH8 settled -1.50 cents lower with volume estimated at 60,331 lots, including 20,784 spreads, 4,430 EFP's, 821 EFS's and 1,565 TAS. 5,178 calls, 2,556 puts also traded. €=$1.1737. BRL: 3.2578/$. CRB: 1.9038. Crude oil 56.8. S&P500 2582.75. Open interest