Arabica coffee futures had another very slow session. The volume was boosted by 7,969 spreads reaching 33,880 contracts the total traded today. The commodity and equity markets action was lethargic. Lack of news and the World Cup kept traders on the side. The dollar declined as investors bet the FED is near to end
its tightening policy. Investors will focus on the FED interest rate decision that will released next Wednesday. The crude oil fell on growing recession concerns, with the Brent trading at $75.30 per barrel afterhours. The WTI USA crude futures spread returned to contango for the first time since Nov 2020. Arabica certs increased 13,177 bags to 681,698 bags. Pending grading 384,310 bags. grading today 16,852 bags. Passed 13,177, failed Upside trend strength slowed through the course of the Robusta session encouraging technically driven longs to liquidate into the weekend as constant overhead origin pressure and no notable commercial buying set the tone. A settlement below today’s low would most likely trigger a retest of key support at $1757 basis March23, which would be helped by the current overbought conditions. This outright weakness prompted the Jan23/mar23 to spread to weaken $23 to $18 premium as the recent commercial short management slowed, triggering the structural long to reverse amid a backdrop of nearly 10,000 lots of open interest resting at the $40 premium JAN/MARCH CSO call.
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