december 20, 2022.
Arabica coffee futures closed higher on Tuesday in a quiet session. The benchmark contract for March delivery settled 350 points higher at 167.80 cents a pound. Activity remained slow with 23,958 lots traded, including 5,050 switches. Specs short covering lifted the market following the opening, as limited selling was revealed. The Latin American currencies were firm discouraging commercial selling that typically is absent at this time of the year. The dollar slipped after the Bank of Japan expanded the cap for the 10-year bonds by 50 basis points. In coffee’s technical, despite oscillators are with neutral values, the proximity to the lower band of the Bollinger added some support. The certified stocks increased by 10,073 bags to 775,656 bags. Pending grading: 289,816 down 9,326. Grading today: 13,350 bags. passed 10,073, failed 3,277.
Robusta MAR23 contract settled at $1871 with a 1873/1851 range. To be expected another slow day with flat price rallying off technical support at 1854 base H3. Origin selling was still present scale up but not quite in the volumes we have seen in previous sessions. This was reflected in the flat price which only traded 8.7k lots on the most liquid contract. No surprises that JAN/MAR continued to push new highs with a 80/91 range on 2.4k lots as shorts struggle to find volume to roll the position. Mar23 2025/1800 fence (to the put) vs 1870Δ52 traded 1000x @ 15, Jan23 2000/1950 put spread traded 1000x @ 36, Jan23 1950/1975 call spread traded 1500x @ 12.
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