Arabica futures for July delivery settled 75 points lower at 186.05 cents a pound. Activity remained slow with volume reaching only 29,520 lots, including 8,067 switches. Spec selling put some pressure on prices at the beginning of the day, however lacking to attract solid the market recovered. Participants continued to be surprised by the GCA's decision to no longer publish monthly reports of green coffee inventories in the USA. Although the data was not entirely accurate, it was a good indicator of the flow of fresh coffee. The dollar firmed further reaching the highs of the last seven weeks. A solid US consumer spending and housing data boosted the greenback. Latin American currencies were mixed with the real trading weak at BRL 4.97 and the Colombian peso recovering below COP 4,500. Certs stocks declined 4,832 bags to 634,264 bags. Pending grading remains at 0.
Robusta Jul23 contract settled at $2582 +71 with a 2588/2504 range. Another choppy day which eventually ended with aggressive buying into the close. It’s clear the path of least resistance is higher, spec buying, and commercial short covering has been met with little resistance from any origin selling paving the way for higher prices. Jul/Sep traded into a contract high of +55 on 4.8k lots eventually settling at +48. Jul23 2250 put traded 2000x @ 7, Sep23 2800/2650 (2x1) call spread traded 1500x @ 10, Sep23 2450 puts vs 2515Δ40 traded 1500x @ 105, Jul23/Sep23 40 call traded 1000x @ 15
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