march 15,2023.

Arabica coffee futures for the May23 contract settle 285 points lower at 172.60 cents a pound. The NY market continued the long liquidation from yesterday briefly testing below the 50-day moving average today at 172.00 and unable to test the area of 175/176 which has seen most of the activity in the previous sessions. It was another “risk-off” session overnight, as traders react to a report that Saudi Arabia will not invest more money into Credit Suisse. Traders are also reacting to this morning’s economic data release; The producer price index came better than expected. U.S. Jobless claims will be release tomorrow. U.S. green coffee stocks fell by 159,994 bags to 6.1 million 60-kg bags by the end of February, according to the Green Coffee Association (GCA). ICE Certified stocks unchanged at 785,577 bags: pending grading increase by 475 bags to 10,158 bags. No grading today.
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Robusta MAY23 contract settled at $2069 -10 with a 2085/2051 range. Macro risk off selling was the main driver for today’s move. Origin were active sellers in the early part of the session but did not chase lower as we tested the lows. Roaster buying was also observed but not in any great size. Support was found at a key tech support level around 2072 basis May23. Volumes picked up with 11.3k lots of May23 going through, May/Jul was less active with 2k lots trading between 9/13. May23 2050/2150 call spread vs 2070Δ26 traded 3000x @ 41.