september 13th 2022

The New York coffee “C” market for December delivery settled 405 points lower at 220.70 cents a pound. Liquidity remained low, with volume reaching 31,294 lots, including 6,124 switches. The high margins for futures positions and some disconnection from the physical markets keep commercial participants away from the market. Today’s speculative liquidation reflects a risk reducing move across the board. The CPI data released today above estimated levels, cemented expectations for higher interest rates that could erode demand for commodities. The dollar rallied 1,3% to near recent highs, putting pressure on the euro and Latin American currencies. The euro again traded below par at 0.9990, while the real lost 1,7 5 to BRL 5.1900. The Colombian peso lost 1,5% to COP 4,415. Arabica certified stocks declined 17,527 bags to 585,215. Pending grading: 4,730. Total grading today 16,189, passed 9,395, failed 6,794.  
 
The Robusta terminal ends the session 1% lower, tracking loses generated through the larger ‘C’ contract which responded to expected rains through the Brazilian Coffee belt and a higher than expect U.S. CPI data. This saw the speculative community in London comfortable to build intraday shorts as values operated below nearby averages to test towards the lower end of the recent 2200 / 2350 range basis Nov22. However, downside pace slowed as roaster buying emerged below $2235 encouraging a marginal correction into the closing bell.