july 19th, 2022.

​Coffee Consolidates After Strong Rally Yesterday

​Arabica coffee futures settled a little higher as participants opted to stay on the side after the intense and volatile Monday’s session. The active contract for September delivery closed 130 points higher at 216.50 cents a pound. Some early profit taking pushed the prices down briefly. Activity was light with the volume reaching 24,595 lots including 5,710 switches. The nearby September-December switch widened 35 points to end at +4.35 cents. Commercial buying has supported the Sep-Dec structure and the September New York -London arbitrage. The Arabica premium was trading today at $1.25 from recent low of $1.08 it traded last week, the tightest since November last year. The certified stocks decreased 6,935 bags to 727,222 bags. Pending grading remained at 0 bags.  
 Market certainly seemed like it needed to take a break from the move we saw yesterday. No follow through in Robusta, just about hanging onto the gains from yesterday. Sep contract had a tight $25 range between 1975 / 2000 on 5.8k lots of settlement $1998 +6. No real activity from the commercials. Sep/Nov continues to trade at a premium +4 on poor volume less then 2k lots. Mid Bollinger band 1999 so possibly some resistance there however due to the recent moves being macro led traditional support resistance has been somewhat meaningless.