september 22, 2022.

Arabica coffee futures closed higher today at the end of another very quiet session. The benchmark contract for December delivery settled 225 points higher at 223.55 cents a pound. Volume continues low with only 17,788 contracts traded including 3,070 switches. The market was sold early as participants worried that aggressive monetary policies would weaken the global demand for commodities. Central banks around the word increased interest rates in an effort to fight inflation, but some economists warn that the economic growth can be dampen. The currencies remained very volatile as the dollar continue to surge against major currencies, trading at new highs. So far this year the US currency index has gained 15.8%. The weather in Brazil has been irregular but some rains spreading over southern areas could help to replenish moisture very important for the development of the crop. Certs stocks decreased 15,080 bags to 485,408 bags. Pending grading 320 bags down 2,800. Grading today 3,120 bags. Passed 325. Failed 2,795.  
 
Robusta NOV22 contract settled at $2238 +12 with a 2240/2200 range. Much like yesterday, we had a choppy day with no direction. Specs seemed to be whipping between the 40ma and the middle Bollinger band. Commercial activity was light. Again, volumes were low with 5k on NOV22 and 1.7k NOV22/JAN23 trading between 10/15. More so Arabica but I feel both markets will struggle to have any kind of meaningful rally into the headwind the increasingly strong USD + weaker EM currencies. No notable options trades