august 26th 2022

Arabica coffee settled lower on Friday at the end of a quiet session. Volume declined to 25,757 lots, including 5,991 switches. With little commercial activity, the session was dominated by short-term specs looking for volatility. The most active contract for December delivery closed 140 points lower at 238.10 cents a pound. The cold front arriving to the Brazil coffee areas during the weekend appeared to weaken, lowering the frost probabilities to near zero. Participants followed the technical factors for any reversal signal after the sharp rally this week. Prices advanced 12.06 % since last Friday and reached a six-month peak on Thursday. The  market is trading in an overbought area, and it is vulnerable for a correction. Certs stocks declined 1,200 bags to 658,857 bags. Pending grading: 132,691 bags; (108,697 AN; 3,201 HO; 20,800 NY). Grading today: 28,857 AN. Passed 23,057, Failed 5,800. Last night a total of 519 delivery notices were issued for September position, for a total so far of 544. The London market is closed Monday, New York will open late at 7:30 AM EST.  
 
COT (CIT) Non-commercials increase net long position by 4,928 to 23,777 net longs in week to August 23. Robusta NOV22 contract settled at $2279 -33 with a 2311/2275 range. Robusta just seems to be taking a breath after seeing a $350 rally this month. Volumes have softened the last couple of sessions with only 6.5k lots trading today on the most active contract. Bear in mind we still have not yet given back all the gains from Wednesday’s rally. Support will defiantly be expected around the 2270/2220 area which was a previous consolidation area. Much like flat price NOV/JAN was not particularly exciting trading 1600 lots between +17/+21 settling back around unchanged at +19. CSO’s remain very active with more upside trading, 2000 NOV/JAN 60 calls traded @ 6, NOV/JAN 20 call traded 1000x @ 12. NOV 2075/2350 cs LU traded 3000x @ 166. London market is closed on Monday 29th, normal hours from 30th Aug.