december 2, 2022.

Arabica coffee futures closed lower for the second consecutive day on spec selling. The most active contract for March delivery closed down 2.0% or 315 points at 162.60 cents a pound. Activity was slow with volume reaching only 28,965 lots, including 7,240 switches. During the week coffee lost 1.4% or 2.45 cents. Traders continued to sell today albeit at a slower pace than Thursday's session, following the market's weakness after failing against the 175-resistance level that capped the rise. Despite the fact that expectations for the Brazil crop were lowered by some analysts in Brazil recently, the rains have been very good, supporting the development of a good crop. During the week, the main coffee-producing areas received copious rains that even caused some landslides on roads. Similar conditions are forecast for the next few days. From Colombia, the manager of the National Federation of Coffee Growers (FNC) was pressured to resign by the new government. According to reports, the losses of the Nacional Coffee Fund, which are estimated at $100 million dollars, could have been a cause. Arabica certs increased by 4,075 bags to 609,267 bags. Pending grading 445,360. Grading today 16,402 bags. Passed 11,086. Failed 5,316.  
ICE ROBUSTA  
Robusta ends the session marginally lower as macro related weakness and Vietnam pressure continue to cap upside progression. Primary focus continues to direct toward spot structure which holds a deep premium as participants monitor a narrow domestic buying window before TET. This is prompting hedge pressure to bypass Jan22 in favor of March and May, which many believe leaves the Jan23 contract vulnerable in front of FND. Technically the values have found firm resistance along the upper Bollinger band average which rests at $1858 today, whilst moving into overbought territory. However, for now we are merely operating in a $1775 - $1875 range with shorter term participants monitoring the growing non-commercial short closely for clues of the next sustained direction.