october 19, 2022.
Arabica coffee futures for December delivery closed 280 points lower at 192.30 cents a pound. Volume reached 37,022 contracts including 9,966 switches. Funds and specks continued to exit the marketplace discouraged by the technical performance of the “C” market. At the same time, more regular rains across the main coffee producing areas of Brazil have improved the perspectives for the next year crop. The Latin American currencies fell as the expected aggressive rate hikes by the FED continue to propel the dollar. The real dropped 0.4% to BRL5.2750 despite the intervention of the central bank that sold USD $1.0 billion. The Colombian peso traded at new historic lows of COP 4,853. Uncertainty about the energy and economic policies of the government has generated a run among investors. ICE certified stocks unchanged at 397,399 bags. Pending classification remain at 3,436 bags. No grading reported today.
Robusta JAN23 contract settled at $2000 -34 with a 2034/1967 range. With Z2 Arabica making new lows for 2022 and further spec liquidation Robusta had nowhere to go but lower. The same story played out in Robusta with recent lows broken by spec long liquidation into medium scale down commercial buying, finding stops as we broke lower. The first time in a while we have seen good volume on Robusta with 17k lots traded on F3. The F3 2000/2200 cs LU vs 1980 traded 5000 lots @ 57. The MAR23/MAY23 -10 & -20 put CSO also traded
2000 lots each.
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