Arabica coffee futures closed higher Wednesday as the strong technical performance continue to fuel the corrective rally. The most active contract for December delivery settled 755 points higher at 182.15 cents a pound. The volume was moderate reaching 47,459 contracts including 15,019 switches. A weak dollar ahead of the interest rate decision by the FED contributed to add support to the coffee prices. The strengthened of the structure added support reflecting concerns about the availability of fresh coffee for prompt delivery. The near December / March switch gained 80 points to end at 5.50 cents. During the last 30 days this structure has attracted large speculative participation as it traded in a range between 10.60 and 1.65 cents. Certs stocks remained unchanged at 384,795 bags. Another 20,080 bags arrived for grading for a total of 141,530 bags at Antwerp and 646 in Hamburg. No grading today.
Robusta JAN23 contract settled at $1882 +43 with a 1831/1887 range. Robusta basically shadowed Arabica for
much of the day with little commercial activity on either side. Some light origin selling noted late on in the
session. 13K lots of JAN23 changed hands today with less than 2k lots on the JAN23/MAR23 going through
between +11/+22. Does seem as though flat price is trying to find a new equilibrium with whippy days
expected until we find a new range, or a strong fundamental story emerges. Jan23 1900/1750 put spread vs
1878Δ30 TRADES 3,650x @ 59 Jan23 1950/1750 put spread vs 1875Δ40 trades 3000x @ 9