JUNE 5,2023.

Arabica coffee futures closed slightly lower on Tuesday at the end of a session dominated by switch trading. The contract for July delivery closed 50 points lower at 182.60 cents a pound. The volume reached 47,654 lots, including 15,878 switches. The most active switch, July-Sept, traded in a range between 280 and 350. Short players have been rolling positions ahead of the first notice day June 22nd.  Friday July options will expire. Over 5,000 lots of Calendar spread option ( CSO ) above the  350 strike will expire, leaving shorts without coverage.  Latin American currencies raised today. The Colombian peso climbed to a ten-month high as the political scandal could disrupt the leftist government reforms. ICE certified inventories dropped 7,780 bags to 557,304. Pending grading 0.
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Robusta Jul23 contract settled at $2614 +7 with a 2637/2591 range. Robusta flat price tested the upper end of the recent range with light origin selling seen scale up. With little fundament news and technical indicators showing no strong signals it’s a rangebound market. The strength in the structure will attract specs to sit with a long position as it ‘’pays’’ to be long. Jul/Sep also continues to trade within the recent range, 9k lots traded between 31/37. Sep23 2700/2350 fence (to the call) vs 2590Δ59 traded 3000x @ 47.