Arabica coffee futures settled with gains Wednesday at the end of a session dominated by spreads trading. The contract with most of the activity for May delivery closed 275 points higher at 187.85 cents a pound. Volume reached 94,870 lots including 35,586 switches. The volume alone of the Mar/May switch was over 27,000 reflecting a sizable participation as it traded between 2.80 to 3.40 cents. As usual computerized systems and algo traders are attracted to the volatility ahead of the first notice day. A significant open interest of the March 190 straddle added some inertia to the market. Other soft commodities were up today, March cocoa rose 3.9% to $5,423 per ton, after posting a record high at $5,429. Sugar rose on concerns of dry weather in Brazil settling 1.8% higher at 23.99 cents. Certified stocks were unchanged at 288,745 bags. Pending grading added 11,520 bags (BR) to 55,014 bags.
Robusta Mar24 contract settled at $3220 +22, with a rage 3197/3245. A constant flow of roaster fixations against March24, with heavy volume still to follow encouraged values in London to hold throughout the session as origin remains noted by absence. This supportive buying has effectively neutralised weakness observed through the start of the month with values holding nearby averages prompting short term systematic shorts to reverse. However, the flat price gains are having no effect on spot structure as March24/May24 continue to slide with values touching $101 premium today as the recent long trims bets as the threat of conillon mobilisation weighs on minds.