august 16th, 2022.

The Arabica coffee futures market ended lower today as the recent industry buying eased. The benchmark contract for September delivery settled 615 points lower at 219.35 cents a pound. The nearby switch lost 75 points premium to end at 3.20 cents. The bearish sentiment was also affected by the expectations that the ICE certified stocks could rise again, as there are currently more than 250,000 bags pending to be grade. This has drawn the attention of market participants who think that these could be coffees to be recertified, however we have to follow the rate of passing to have a better assessment since the exchange don’t disclose the recertification status. Certs increased today by 5,632 bags to 577,212 bags. Pending declined 24,830 bags to 238,429 bags. Total grading 30,720; 18,560 passed (60.4 %); 12,160 failed (39.6%) . Commodity markets were also hit by concerns of a global recession after China's economic data showed the economy slowing in July. Brent crude oil fell 3.0% to $92,05, the lowest since February.  
 
 
Robusta NOV22 contract settled at $2228 -37 with a 2270/2222 range. Today seemed to be a rejection of the highs with fresh buying drying up (for now). A test of yesterday’s highs but with no follow through meant it was time for flat price to have a breather. With the market gaining over $220 in the last couple of weeks a day of consolidation was to be expected, and it just coincides with Arabica finding good technical resistance and the top of the resent range around some big moving averages. Volumes remained steady with 10k trading.