INTL FCStone Daily Coffee Report

May delivery Coffee futures in the ICE Exchange settled 60 points higher on Friday at 142.05 cents per pound. Volume reached a mere 16,357 lots. After gapping up at the opening for the second consecutive session, prices consolidated sideways, influenced by short term speculators trading both side of the market. Markets overall were relatively calm, with little change in major currencies. The Brazilian real strengthened 0,55% at USDBRL3.10.
 
During the week, prices consolidated sideways, in low volume, increasing 70 points. Volatility in the Brazilian real influenced prices after the FED decision was published to increase interest rates and the federal funds target by 25 points. GCA inventories in the United States for the month of February were published, increasing 123,007 bags to 6,445,774 bags. Last year inventories increased by 33,000 bags during the same month.
 
The Robusta market closed the week in turgid fashion, once again struggling to generate momentum in either direction, caught in an apparent $2150/$2200 range. Flat price action saw values lift once more off the opening bell in response to overnight Dollar weakness, although further long positions failed to establish to lift London through $2200. With New York also struggling to generated upside traction, early long positions looked to liquidate, with London moving into negative territory where it held for much of the rest of the session. Technical support emerged at the 20 day moving average at $2169 with values content to operate between there and the 50 day average at $2189. The posting of 4300 lots of EFPs against May17 provided much of the day’s volume, with most participants assigning this to the financing of the certified stock holder. Reasonable turnover was observed in the options area with 1600 lots of the Sep 1800 put trading at $12 alongside an 8% delta hedge at $2215.