INTL FCStone Daily Coffee Report

Arabica Coffee Futures settled higher on Wednesday, after a session dominated by macroeconomic volatility. The December delivery contract gained 260 points, settling at 170.10 cents per pound. Prices opened under pressure, while markets around the world discounted the US Presidential surprise. Donald Trump will be the next US President. After gapping lower at the opening, prices reached the day’s low during the first hour of trading, 430 points lower, until speculative buying helped close the opening gap, and eventually broke the resistance level of 166.90 basis December, reaching a high of 325 points higher. During the last half hour, short term participants book profits, pressuring prices towards the close. Global markets took six hours to balance after the news.
 
London Market- The Robusta market overcame severe macroeconomic turbulence to close higher following a highly volatile session.
Overnight news of Donald Trump’s election to U.S Presidency sent shockwaves through global markets, with Asian stocks plummeting as investors scrambled for ‘safe haven’ commodities, turning to gold and the Japanese Yen amongst others. Global uncertainty was reflected through the London opening, as values opened $23 lower, triggering resting sell stops to drive values below the 50 day moving average. Support quickly emerged through commercial buyers, operating in good volumes, with the sessions low at $2017 representing a $177 fall from Monday’s settlement.  With commercial support eroding the opening gap, early shorts returned to cover, breaching psychological resistance at $2100 and maintaining an upward trajectory through the remainder of the session.
Options attracted good turnover, with 1175 lots of Jan 2150 calls purchased at $57 with a 52% delta at $2127.