january 4, 2022.

Arabica coffee futures test lower after yesterday’s new shorts activity. The most active contract Mar23 settle 500 points lower at 161.30 cents a pound. Volume was moderate with 43,500 lots including 10,590 switches. Crude oil losses had significant pressure on the commodities market in general as well as the LATAM currencies. China is recovering from the worst Covid infection wave after the shift to “living with the Covid-19 virus” last month. Traders are eyeing China’s recovery and expecting it to be a leading constructive factor in global growth later this year, the lingering property crisis, and underlying problems of more outstanding debt  
issues of the Chinese local government should not be overlooked. Arabica certs stocks decreased by 1,516 bags to 813,152 bags. Pending grading: 226,195. Grading: 16,538 Passed 4,079. Failed 12,459.  
 
Robusta MAR23 contract settled at $1873 +21 with a 1880/1855 range. The thick layer of origin selling which we have seen over the last few weeks seemed to have back off allowing for some spec buying across key technical levels. The close today puts us back in the middle of the recent range. Volumes were steady with 11.7k lots trading on the MAR23. Mar/May remains strong settling at +33 on 1.7k lots. Mar23 1800 puts vs 1878Δ30 traded 2000x @ 30.