August, 3, 2022.

​Arabica Coffee Settles Higher  
ICE Arabica coffee futures ended firm on Tuesday at the end of a very volatile session. The forecasts of a cold front that would reach the producing areas over the weekend raised some concern among short players who had added positions after the weakness shown in the previous two days. The contract for September delivery  closed up 475 points at 214.65 cents a pound. Industry buying also helped to add support to the market. The volume reached 48,973 contracts including 14,470 switches. Good volume of rolls ahead of the FND was observed. The move accelerated as prices broke above the 215 level, triggering stop orders and option-related buying. The open interest of the September calls, which expire next Friday 12th, exceeds 7,000 between 220 and 230, generating resistance for the moment. Certificates fell 4,870 bags to 695,135 bags. Pending continue at zero.  
Robusta remains in the top range of the last five sessions and mirroring arabicas activity while consolidating near the top Bollinger band. Today Robusta tested the high of the week for a second time unable to break the 2056 level opted to settle near unchanged. The most active contract for delivery in September settle 1 point  
lower at 2026. The switch Sep22/Nov22 settle at +3. The 20 day moving average seems to be turning up but with the market walking the line of overbought territory on the stochastics, the consolidation could continue for the remaining of the week. Fridays NFP release expected +250k and unemployment at 3.6%.