Arabica coffee futures settled lower Tuesday on slow session. The most active contract for March delivery closed 145 points lower at 161.85 cents a pound. Activity was modest reflecting the Holidays and the beginning of the December delivery period. Up to date there has been 69 delivery notices. Volume reached 22,825 lots, including 4,504 switches. Commercial activity was noted as some origin selling took advantage of the positive opening. Speculative liquidation affected the soft complex. Sugar fell 3.0 % under 20.0 cents. Concerns of growing supplies encouraged the spec liquidation. The release of the USDA FAS coffee estimates last night, did not cause any particular effect on the coffee prices today, and analyst considered it was already factored. Other markets were quiet ahead of the release of the November FED minutes tomorrow. The CFTC COT report will be published on Monday instead of Friday due to the holidays.
London Market- Values lifted $18 off the opening bell as a result of a final hour resurgence in New York yesterday evening. A temporary breach of the psychological $2100 barrier failed to attract sufficient intraday longs for further upward traction, with volume hard to come by. Roaster buying remained operational throughout the day, limiting potential for movements lower, as January tested and bounced back above the 50 day moving average at $2082. A similar lack of direction in New York rendered the rest of the session to play out in a lethargic fashion, with the market content to breathe following recent volatility. May observed at 2500 lot EFS, which most participants observed as forward financing.
Options turnover simmered with 650 lots of Jan 2050 puts purchased at $52 with a 40% delta at $2092.
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