Arabica coffee futures consolidate near key area of 184 with a smaller range then previous 2 sessions. The most active contract Jul23 settle 255 higher at 186.50 cents a pound. Recent volume has been moderated above 30K, today was not the exception a total of 32,733 lots were traded including 8,624 switches. Weakness on both the Colombian Peso and the Brazilian Real weighted on the “C” market. Temperatures around 6/9 Celsius continue to linger on the weather forecast for Brazil starting this weekend and into early next week. Participants will keep monitoring for any changes. Today's focus on the US debt ceiling talks combined with poor earnings forecasts to weigh on stocks this morning, with commodity prices following a similar pattern. Traders are also being cautious ahead of this week's anticipated inflation data. Arabica certified stocks decrease 4,186 bags to 650,970 bags. Pending grading 0.
The Robusta terminal continues to probe the upside as commercial pressure is noted by absence, whilst the fund community hold values above forward coverage pricing targets. This action sees levels straddled by the middle and higher Bollinger band averages, which has been the case since late March 2023 as the terminal maintains the firm up trend encouraged by heavy fund inflows across the sector. The structural premium down the curve does little to suggest we should expect a sustained reversal over the short term with most participants comfortable targeting fresh contract highs.
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