september 14th 2022
Arabica coffee futures added loses Wednesday as speculative liquidations continue across the markets. The US inflation data fueled expectative of fastest pace for interest rates hikes that has pushed down the equity and commodity markets. The most active coffee contract for December delivery in the ICE exchange of New York, ended 585 points or 2.5% lower, at 214.85 cents a pound. Activity continues moderate with 37,644 lots traded, including 9,128 switches. The total volume so far this month reaches only 260,000 lots. In mid-September already and we are not even at ¼ of the average volume of the last twelve months. Forecasts of rains for the southern areas of Brazil added the bearish sentiment. Arabica certs stocks declined 9,760 bags to 575,455. Pending grading: 3,160 bags down 1,610. Grading today: 3,980 bags. Passed 3,285. Failed 695. Tomorrow the GCA will publish the data for the US stocks at the end of August. Last year in August stocks increased 56,138 bags. The five-year average variation is a reduction of 86,558 bags.
Robusta NOV22 contract settled at $2230 -9 with a 2223/2248 range. London market had a small range on low volume a total of 8,684 lots including 1,851 switches. Unable to trade above the 8-day moving average today at 2249, market opted to trace Arabica at a slower pace an eventually make a minimum brake below yesterday’s low at 2223. No significant stops were found at todays lows, participants seem to be absent or waiting for the market to test the area of 2185/2205. Nov22/ Jan22 based structure settled at $11.
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