Arabica coffee futures keep trading both sides of the recent range. Early trading had the markets stealth and slowly trading up to make a new high at 187.85 on the Jul23. later in the session the market trickle down before the US CPI was released were the dollar index started to recover early session losses putting some pressure in the “C” contract. The JUL23 contract found support at 185.00 for most of the session. The days range keeps getting smaller today 330 points wide and a settlement 55 points lower at 185.95 cents a pound on Jul23. The U.S CPI (YOY) (APR) actual: 4.9% VS 5.0% previous; EST 5.0%, U.S core CPI (YOY) (APR) actual: 5.5% VS 5.6% previous; EST 5.5%. Arabica certified stocks decrease 1,140 bags to 649,830 bags. Pending grading 0.
Robusta Jul23 contract settled at $2481 +16 with a 2487/2456 range. Flat price continues to probe the highs but unable to breakout. Origin is very much on the side-lines with the next layer of selling well above these levels it isn’t taking much on the buy side to keep prices at the upper end of the recent range. There is no strong fundamental story now in Robusta so for the moment the macro tailwind of a weaker US CPI inflation print is likely to have been a significant contributor to the activity we saw today. The switch Jul/Sep remains firm on light volume and a tight range 20/25 on 1.5k lots. The Jul/Sep CSO -25 put traded 1000x @ 1, Sep23 2400/2200 put spread vs 2443Δ24 traded 500x @ 73.
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