septmeber 21st 2022

​Arabica coffee futures for December delivery settled 385 points lower at 221.30 cents a pound. Activity was extremely low with the volume reaching only 20,772 contracts, including 5,073 switches. The physical business continued languish keeping the commercial participation away from the marketplace. The dollar rallied to a new twenty year high propelled by the third consecutive 75 basis points interest rate hike announced this afternoon. The euro dropped to a twenty-year, trading at low of $0.9810. The possible growing of the Ukraine war after Putin called for more military reserves caused concerns amid investors and contributed to the strengthened of the US currency as well. Arabica certs stocks declined 14,576 bags to 500,488 bags. Pending grading remains at 3,120 bags. No grading today.  
 
Robusta NOV22 contract settled at $2226 -10 with a 2247/2199 range. Fairly dry day considering the risk off Arabica market ahead of the FED rate announcement. NOV22 flat price drifted lower on light volume to test the 40ma @ 2198, finding technical support we eventually auctioned off the lows ending the day in neutral ground. Volumes were very low with only 4k lots trading. NOV22/JAN23 kept a tight range between 12/15 on 600 lots. NOV22 2250 calls traded 500x LU vs 2216 @ $4