september 29 2022

Arabica coffee futures closed lower at the end of a session dominated by short-term specs. The benchmark contract for December delivery settled 300 points lower at 225.70 cents a pound. The nearby Dec/ Mar switch lost 0.25 cents premium to end at 8.85 cents premium. Today volume was boosted by 7,609 switches. The possible shortage of fresh coffee and the fall of the cert stocks have generated great interest in the nearby structure. The weakened of the LATAM currencies put some pressure on the coffee market today. The real of Brazil added loses of 0.5% to BRL 5.3900, the lowest level in two months, even as data showed an improve of the economic growth outlook for 2022 and better jobs creation. However, the result of the presidential election this Sunday is concerning the investors. The Colombian peso declined 0.9% to COP 4522. Certified stocks decreased 9,290 bags to 435,409 bags. Pending grading: 640. No grading today.  
 
In London, the November Robusta market finished $ 26 lower or 1.2% at $ 2,182 per ton. Activity remained slow. The market remains inside a small range, with the specs selling as prices failed to exceed previous session high. From Vietnam, coffee plants did not suffer damage from the Typhoon Noru this week. Coffee exports are estimated to have increased 13.7% year on year during first nine months, reported REUTERS.