Monday September 18,2023

Arabica coffee futures continue the upside momentum at a slower pace on smaller volume. Total volume was 39,575 including 8,138 switches. The NY market made new highs in the early hours on the way to the next area of resistance at 163. The daily range was tightly held between 159.00/160.50 for most of the session. The Arabica Dec23 contract settled with little change 45 points higher at $159.60 cents a pound. Markets take a slower pace as they await the Fed's projection for its benchmark interest rate, to be released on Wednesday. Dry weather patterns in brasil will be monitor in the coming weeks as prolong dry weather could provide additional support. The certified stocks added 2,200 bags at 448,113total bags. Pending grading is now at 16,835.
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Robusta Nov23 contract settled at $2566 +10 with a 2610/2551 range. Another test through recent highs largely coming from speculative activity which was meant with little to no resistance from origin selling. The structure was unable to hold on to Fridays gains seeing a 121/157 range on 4.9k lots. A pull back in this spread has been long overdue but important to note the issues still remain. Robusta Nov23 2400/2250 putspread trades 1200x @ 17, Robusta Nov23 2400/2300 (1x2) putspread trades 1500x, Robusta Nov23/Jan24 200 call trades 1500x @ 14.