october 31, 2022.

The coffee market recovered on Monday on short covering. Following a firm opening, solid buying was attracted that boosted the prices above the 170-price level. The most active contract for December delivery closed with a gain of 790 points at 177.70 cents per pound. The price action was accompanied by high volume with 61,004 contracts traded including 17,862 switches. The rally was almost unobstructed due to very limited selling from both commercials and speculators. Origins with little coffee available are awaiting the harvest and the oversold market discouraged the spec selling. Friday's COT report showed funds already with over 3,000 net short position as of last Tuesday, suggesting a short net position near to 10,000 lots by Friday. Brazil’s currency gained more than 2 % to BRL 5.1666, adding support to the coffee market. The certify stocks remain at 384,795 bags, however pending increased today by 20,200 bags for a total of 101,298 bags in the port of Antwerp and 646 bags in the port of Hamburg. According to different sources, some 200,000 bags are being expected to arrive to the terminal.  
 
Robusta JAN23 contract settled at $1853 +4 with a 1879/1846 range. Despite Arabica being 7 cents + higher Robusta just didn’t get going. Not able to break above Fridays high. Commercial selling was noted early in the session. Volumes remain strong with 11k lots trading on the JAN23 contract, and 2.9k Jan/Mar trading between 11/17. Jan23 2000 calls LU traded 2000x @ 32 / Jan23 1750 puts LU traded 1000x @ 34