august 24, 2022.
Arabica coffee futures hit a 2 ½ month high as dry weather forecast for the main coffee producing areas of Brazil raised concerns amid participants. The most active contract for December delivery closed 10.75 cents higher at 239.00 cents a pound. Weather analyst predicted that extreme dry conditions are expected for the next 10-day period. After some southern regions of Minas and Mogiana received around 35mm of rains earlier in August, it is needed more constant rains to secure a complete bloom to occur in these regions. Also lending support to the market the technical strength as prices exceeded resistance levels easily that encouraged solid speculative and funds buying. The dollar remained firm near recent highs adding pressure over the Latin American currencies, however coffee appeared not affected from the action. Arabica certs increased by 10,113 bags to 663,780 bags. Pending grading: Antwerp 148,677. New York 13,325. Total 162,002 bags. Grading today: 29,587 bags. Passed 23,497; failed 6,090.
Robusta NOV22 contract settled at $2348 +90 with a 2355/2258 range. Almost the perfect storm, with mass media reports of Vietnam Robusta stocks running extremely low and the bullish Arabica story heating up, flat price had an extremely strong rally. Volumes were also very good nearly 17k lots changing hands on NOV22, a blend of the market breaking highs and book squaring ahead of FND in SEP22 tomorrow. Option market was also very busy with some good size being thrown about in particular the NOV22/MAR23 100 call CSO trading 2500x @ 20, The JAN23/MAR23 40/0 fence CSO continues to build with a further 1500x lots trading today, JAN23 1850 p also traded 800x @ 12.
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