Arabica coffee futures fell on Tuesday pressured by spec selling. The July contract closed 505 points or 2.6% lower at 188.40 cents a pound. The long liquidation was prompted after the release of the open interest that evidenced the adding of new longs as it showed an increase of 1,426 contracts. The July position traded down to 187.05, attracting solid selling as it broken easily the recent support at 190. Without fundamental news, the stronger dollar and weaker Brazilian real added weight on the prices. Commodities were mostly lower with the crude oil falling 2.2 % to $ 80.88 per bbl. Arabica certs were unchanged at 699,508 bags. No coffee pending grading.
Robusta Jul23 contract settled at $2419 -25 with a 2442/2396 range. Market was certainly taking a breather after the impressive pre-FND rally that was observed yesterday. Flat price opened a touch softer but quickly found sellers into a vacuum of buying leading to a daily low print of 2396 early on in the session. The rest of the day saw a small recovery off the lows but still unable to get back in the green. May23 OI still sits around 5k lots. Spreads down the board remain in backwardation however all seemed to soften today, Jul23/Sep23 saw a 26/31 range settling at +28 on 2.5k lots. Sep23 2200 puts vs 2400Δ26 traded 3000x @ 56.