Evening Coffee by Societe Generale
New York coffee traded in a range 1.40¢ either side of unchanged, closed near its high, above yesterday's high. London coffee opened above yesterday's high, fell to take out its low, finding support at the middle of last Thursday's active range. The action of the past three days is fully contained in the upper half of Thursday's - $1768 to $1845.
538 notices were issued against Sep16 KC on first notice day. Societe Generale Americas Securities (SGAS) issued them all, Abn Amro stopped 455 lots, SGAS 67.
September New York (KCEU6) settled 89% to its high, up 1.20¢. Volume was forty-four percent below average at an estimated 22,817 lots including an estimated 397 EFP's, 8 EFS's, 354 TAS and 3,972 spreads. 5,839 calls and 3,418 puts also traded. The KCEU6-LRCU6 arbitrage: 63.61¢+2.01¢. Ratio: 1.7830+0.0281. €: $1.1310-0.1%. BRL: 3.2238/$-0.7%. CRB: +0.7%. Crude oil: +1½%. S&P500:+¼%. Open interest: 164,806-1,719 (50-day stochastic: 0%; 125-day: 0%).
September London (LRCU6) settled in its upper half (60%), down eight dollars . Volume was thirty-seven percent above average at an estimated 20,542 lots including 7,606 spreads and 2,045 EFP's. 1,400 calls and 150 puts also traded. Open interest: 112,060-1,630 (50-day stochastic: 88%; 125-day: 33%).
ICE Europe reports that commercial traders were net buyers of 3,827 lots of robusta coffee in the week ending August 16th reducing their net short position to 30,473 lots. Swap dealers increased their net short position by 2,162 lots to 6,210. Non-reportable traders cut their long position by 1,223 lots to 1,992. Other reportables sold 741 lots (long 9,006). Managed money bought 299 lots (long 25,685).
Cooxupe commercial superintendent Lucio Dias told Bloomberg News that members of its cooperative did not report any frost in their coffee areas in Minas Gerais on Tuesday. Somar reported that weak frost may have affected some Brazil coffee.
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