The coffee futures market today saw an early rally, caused by buying following the firm settlement from last week. However, once prices hit the resistance level near last week's high, traders began to take profits, pushing the prices down. The most active contract for May delivery settled 235 points lower at 176.90 cents a pound. Volume picked up reaching 52,378 after the last two weeks that showed poor activity. Technical factors were the primary drivers of today's action, which caused a brief spike before the profit taking took its toll. ICE Certified stocks increase by 275 bags to 747,853 bags, Pending grading now at 0. Grading today 1,135 bags, Failed 860. passed 275.
An explosive start to the week, as spot structure in London prompted heavy gains through early trade with May23/july23 printing up to $61 with a settle at $49 premium up $26 on 1,100 lots. This was generated amid a backdrop of consistent origin selling flowing into July and Sep23 as Vietnam were happy to respond through the current price point, whilst a speculative element was buying into May23. Most participants will assume the may23 buying is related to the arbitrage related long leg resting in London, with some expecting the position to be used to receive certified stocks,
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