July, 29th 2022.
Arabica Coffee Futures End Lower
Arabica coffee futures for September delivery settled 70 points lower at 218.40 cents a pound. Activity was light and mostly dominated by short term specs looking for some volatility. Commercial participation was limited. Volume reached 32,000 lots, including 9,543 switches. News that the U.S. economy contracted for a
second quarter in a row, added some bearish tone to the markets early. Coffee bounced after the spec selling eased and the prices got support near the 214-price level for the September contract. Dealers continued concerned with the dry weather in Brazil that could affect the 2023 /2024 crop. The Latin American equities and currencies rallied as a less aggressive FED interest hikes could be possible following today’s GDP figure. The real recovered to BRL 5.1990, the high of the last 30 days, and the Colombian peso to COP 4,361. Certs stocks down 285 bags to 700,050 bags. No pending grading were reported.
Robusta SEP22 contract settled at $2015 +6 with a 1994/2028 range. Flat price managed to break yesterday’s high going on to test the 40-day moving average and the upper Bollinger band both at $2028 (high). Technical selling was seen around these levels causing flat price to soften back to the settlement area. Volume was looking healthier today at 8.2k lots on the most active contract with just over 3k lots of sep/nov switches changing hands between 0 and 5. The Nov/Jan 40/0 fence CSO traded again today 1500x @ 8 adding to the 1000x lots that traded yesterday. The biggest option clip on the day was the Nov22 2100 calls LU trading 1700x @ 64.
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