Arabica coffee futures climbed Wednesday as commercial and fund buying entered in the market. The benchmark contract for December delivery settled 535 points higher at 224.65 cents a pound. Volume picked  up reaching 49,937 contracts including 14,686 switches. The nearby Dec/Mar structure attracted good buying interest as it traded today at a new high of 10.30 cents premium. Good volume of calendar spread options (CSO) is reflected in the large open interest that exceeds 80,000. The decline of the certs stocks and recent data showing shipments of Arabica falling have fueled the bullish sentiment. Latin American currencies reversed today but did not affect the coffee prices. The certs stocks remained unchanged at 417,306 bags. Pending grading: 4,076 bags. No grading today.  
 
Robusta NOV22 contract settled at $2173 +1 with a 2183/2158 range. In the last 3 sessions settlement we have moved $0 despite the volatility in Arabica. Volumes remain low with 6k lots trading on NOV22. The NOV22/JAN23 softened back into mid-single digits on 4k lots with a range of +5/+14. Commercial activity  remains low but scale down NOV/JAN buying was noted. CSO activity has picked up with various quotes being requested. The JAN/MAR 40/0 fence traded 1000x @ 8. 

Arabica coffee futures closed lower on rain forecast for Brazil. The benchmark contract for December delivery settled 580 points lower at 215.75 cents a pound. According with MAXAR, light rains fell over the weekend, and more rains are expected later in the week. After a period of dryness, this wet pattern could recover the soil moisture necessary for a good development of the crop in the current flowering phase. Volume reached 40,168 contracts including 9,663 switches. The real climbed after Lula fell short of clinching the victory in yesterday’s presidential election. The real finished at BRL 5.1825 from BRL 5.4154 closed on Friday. Other Latin American currencies rallied on US stocks recovery and the dollar steadied. Cert stocks declined 8,874 bags to 417,306 bags. Pending grading remains at 640 bags. No grading today.  
 
Robusta NOV22 contract settled at $2173 +20 with a 2150/2181 range. Robusta certainly showed resilience in the face of Arabica losing nearly 6 cents on the day. Commercial activity remained subdued but speculative arb selling noted to be about. Not a great deal to highlight on today’s session, volumes remain low with 6.8k lots trading on NOV22 and just less than 3k NOV/JAN trading between 7/12. Options markets very quiet.