Thursday, September 14, 2023.

Arabica coffee futures for December delivery settled 205 higher at 154.00 cents a pound. With commercial selling absent in the market the speculative buying boosted the prices easily.  As market participants are focusing on the development of the next crop in Brazil, some concern has arisen among farmers as rains forecasted for this week has not materialize.  CONAB will release their third survey of Brazil’s 23 crop next week but should have little impact as this has already been factored into prices.  A weaker dollar supported the commodity complex in general. The crude oil rose to the high in this year as tight supplies overshadowed weaker economic grow. Saudi Arabia and Russia extended oil production cuts that could restrain the supply during the next months of seasonal high demand. Cert stocks were unchanged at 442,548 bags. Pending grading 19,820 bags.
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Robusta Nov23 contract settled at $2495 +16 with a 2508/2451 range. Slow day with structure continuing its climb dragging flat price with it. Nov/Jan was the main point of action today, 108/133 range on 2.7k lots, this strength dragged flat price higher with very little commercial activity on either side. Intraday volatility remains high with the absence of any fresh fundamental news, speculators continue to create a noisy trading environment turning positions on a daily basis. Robusta Nov23/Jan24 CSO 150/100 fence (to the call) trades 500x @ 8, Robusta Nov23/Jan24 CSO 150/200 (1x2) callspread trades 500x @ 6.