november 4, 2022.
Arabica coffee futures for December delivery closed 355 points higher today at 175.75 cents a pound. Volume was moderate reaching 35,548 contracts including 11,012 switches. Market action continued to be driven by short-term speculators. As fund selling has declined , speculators have been encouraged to go long in their portfolios and cover short positions helping to fuel the rally. The dollar fell about 2% supporting the commodity markets in general. The strength of the soft complex added help to coffee, especially with cocoa rising 2.5%. Certified stocks rose 5,291 bags to 387,986 bags. Those pending grading increased 9,463 to 171,765 bags. A total of 10,676 bags were graded today. 5,336 bags were approved. 5,265 bags failed. COT (CIT) Non-commercials increase net short position by 11,506 to 14,590 net short lots in week to November 1.
Robusta JAN23 contract settled at $1869 +27 with a 1900/1839 range. Given the big move lower in both markets yesterday largely down to the $ strength off the back of Powells Hawkish comments we started the day with a more bullish tone as overnight we saw the $ actually weaken once the news had been digested. Robusta certainly seems to be forming a bottom and is trying to probe higher helped by the rally today in KC. Origin selling was light today. Realistically the rally today was more of a reaction to the over extension from Thursday than anything else. Jan/Mar saw a 13/27 range on 3k lots. TRADES 4000X @ 53 -- RC Mar23 2000
calls vs 1870Δ34
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