january 17, 2022.
Arabica coffee futures ended lower Tuesday on a quiet session. The most active contract for March delivery settled 65 points lower at 151.10 cents a pound. Volume declined to 31,390 lots, including 7,396 switches. The market gets some support early after the publication of the open interest showed that non- commercials had added more shorts as of last Tuesday which prompted the recent short covering. Brazil green coffee exports fell 22.2 % during 2022. Total exports reached 35.57 million bags, CECAFE said yesterday. During December coffee exports totaled 2.86 million bags, or 16.6 % less than a year ago, CECAFE data showed. Participants continued to focus on the forecasts of the new Brazil crop. CONAB, the government agency will release the first estimate on Thursday. Latin American currencies were mixed, the real of Brazil was up 0.8% after inflation data that was better than expected. The peso of Colombia declined 0.9 % to COP 4,724.94. Certs stocks decreased 370 bags to 850,354 bags. pending grading 120,864 bags. Grading today: 21,297 bags. Passed 6,380 (30%). Failed 14,917 (70%). GCA stocks decrease by 12,573 to 6,377,851 bags on Dec 2022, on Dec 2021 they decreased 10,029 bags.
Robusta MAR23 contract settled at $1895 -12 with a 1918/1891 range. Slow day with no real conviction either way. However, on the daily chart we are starting to look a bit extended at the top of the Bollinger bands and borderline overbought territory. Origin selling was present in the early part of the session and for the rest of the day flat price seemed to just track Arabica. Volumes on the H3 contract were 7.8k and MAR/MAY saw a 23/38 range on 2.2k lots. Mar23 1800 puts vs 1900Δ22 traded 3000x @ 15, Mar23 1825 puts vs 1905Δ26 traded 2000x @ 23, Mar23 1850 puts vs 1905Δ34 traded 1600x @ 30, May23 1750 puts vs 1868Δ28 traded 1050x @ 38.
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