november 17, 2022.
Arabica coffee futures was under pressure again on producers selling ahead of the beginning of the delivery period for the December position. The most active contract for march delivery settled 205 points lower at 156.35 cents a pound. Commercial selling reflected the last-minute price fixing origin sales that were waiting for a possible recovery in prices before the FND next Monday November 21st. The action has caused the forward curve to go back to contango. The Z/H switch had a range of -2.85/-3.80 with a settlement at -3.65. At the same time, specs added short positions encouraged by the continued weak performance of the prices. The weakness of the Brazilian real and the Colombian peso added bearishness to the market. Certified stocks at the ICE exchange were almost unchanged at 484,089 bags, well above the 23 -year low of 382,695 set on November 3. Pending grading increased by 7,589 bags to 584,688 bags.
Robusta JAN23 contract settled at $1818 +26 with a 1828/1769 range. Volatile day for Robusta, much of the day was spent shadowing Arabica and grinding lower testing new lows with some light origin selling following the market lower. Later on, in the session a wave of roaster buying triggered a relatively small spec short covering rally pushing flat price through intraday resistance levels. Half decent volume on the JAN23 contract with a touch over 10k contracts changing hands. JAN23/MAR23 had a 12/29 range on 3.2k lots. Jan23 1950 calls vs 1827Δ22 traded 2000x @ 19 - Mar23 1875 calls vs 1760Δ30 traded 2500x @ 47.
Leave a Reply.