Coffee futures ended a little lower but recovering from the early losses. The commodity and financial markets added pressure on coffee prices at the beginning of the session on China news evidencing a slowdown of the economy. The benchmark contract for the September delivery closed 110 points at 225.50 cents a pound, while the back months lost 85 points reflecting the weakening of the structure as the industry buying eased. The fundamentals continued constructive, with concerns about premature flowers in Brazil, and lower yields of the current harvest. The issue of certified inventories continues to surprise. Today, 15,360 bags were classified, of which 640 were rejected. The total certificates decreased 325 bags to 571,580 bags. Pending grading increased by 29,857 bags to 263,259 bags.
Robusta NOV22 contract settled at $2265 +4 with a 2270/2233 range. The most liquid month just about managed to hang on to a small gain on the day having tested Friday’s high and not quite breaking out. Volumes were strong with 11k lots going through on NOV22, and 2.8klots SEP/NOV trading between -7/-11. Flat price is starting to look a little over extended / overbought sitting well above major moving averages and 6th close above the upper Bollinger band. 2000x NOV21 +2100c / -2250c / +2500c traded LU vs 2260 & 2240. The NOV22 2300 calls traded 1000X LIVE @ 82.5 average.
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