october 12, 2022.

Arabica coffee futures settled sharply lower on a spread dominated session. The most active contract for December delivery settled 810 points lower or 3,71% at 209.75 cents a pound. The volume reached 57,471 contracts, boosted by 16,030 switches. A firm liquidation of the active December- March switch pushed the market. The switch lost 1.55 premium to end at 8.35 cents. Data showing an increase of the Brazil exports of Arabica during September fueled the bearish sentiment. According with CECAFE , total export of green coffee went up 7% compared with the same month last year. Arabica increased 18% to 2.93 million 60-kg bags, while Robusta declined 62%. In addition, recent rains in Brazil have recovered the soil moisture of the main producing areas helping a better development of the next crop. The dollar climbed to a fresh 24-year peak versus the yen and remain near highs against other major currencies supported by PPI data higher than expected. Certified stocks unchanged at 416,399 bags. Pending at 3,436 bags. No grading today.  
 
NOV22 contract settled at $2142 -24 with a 2171/2138 range. Robusta drifts lower with Arabica off 8 cents. Basis NOV22 $2134 remains the near term low, $2122 major support level. Volumes remain low, with a bulk of the flat price volume and OI going through on the JAN23 contract. Nov/Jan traded 2.8k lots between 1/6 settling at +1.