november 16, 2022.
Arabica coffee consolidated on the bottom range of yesterday’s session. Previous day long liquidation had most traders waiting on the sideline. A brief attempt on the positive side was noted on the early hours with not much to build upon, coffee market continues to trade in oversold territory. The demand seemed to have a little help with the changes in Chinas covid restrictions, but inflation news maintain the pressure. In the UK October inflation was reported at 11.1% (annualized) vs 10.15 in September, giving us the highest number in over 40 years. More pressure on the Bank of England to maintain its current restrictive policy, even to tighten it if they see that inflation does not fall. The most active contract March settle 110 points lower at 158.40 cents a pound. Total volume was 45,552 lots including 12,331 switches. The Z/H switch had a range of -1.85/- 3.10 with a settlement at -2.90. Today the certified stocks increase by 17,078 at 485,369 bags. The pending grading decrease by 21,617 bags for a total of 577,099 bags. Total graded 21,617 bags, Failed 4,539, Passed
Robusta JAN23 contract settled at $1792 -10 with a 1817/1774 range. Another day of low volumes and a grind lower. On the open Arabica tried to regain some of the losses from yesterday but this was short lived, and once that early buying dried up, we once again tested the lows bringing more selling into Robusta. The fear is there is very little commercial buying around and the origin will have volume to sell in the near future so we could start hitting vacuums of liquidity. JAN/MAR had a pretty tight range +/10/+15 on <1k lots. Jan23 1900 call traded 500x @ 23 LIVE.
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