january 25, 2023

Arabica coffee futures for March delivery settled 260 points higher at 162.45 cents a pound. Activity continued to be boosted by spreads. The volume reached 45,656 lots including 14,334 switches. Spec short covering continue to support the market specially as price negotiated above the down trend resistance at the 162-price level. Today we completed 9 consecutive positive sessions that have gradually considered the reopening of China. Traders will keep an eye on any news on the Ukraine conflict as there are no signs of the hostilities subsiding. Germany approved sending tanks to Ukraine, which opened the door for Poland and other countries to do the same. The United States has also promised to send tanks to Ukraine, which the Russian ambassador has called a clear provocation. Certified stocks increased 4,747 bags to 863,594. Pending decreased 16,104 to 109,105 bags. Grading today 18,055. Passed 5,322. Failed 13,733 bags.  
 
Robusta MAR23 contract settled at $1970 +27 with a 1974/1943 range. A key breakout above the 100ma triggered further spec buying into little origin selling. The lunar new year has meant that a lot of origin participants are not active in the market meaning all the spec buying is largely unchallenged. Next resistance is looking to be $2000 on the H3 contract, a level not seen since mid Oct 2022. Volume remains around the 9k mark on the most liquid contract. MAR/MAY traded 4.k lots between 28/32. May23 2100 call traded 500x @ 32.