The New Yok coffee “C” closed higher today supported by speculative short covering after the market bounced from previous session’s lows. The most active contract for September delivery settled 210 points higher at
154.05 cents a pound. Volume declined to 42,012 lots, reflecting less spreads activity ahead of the FND tomorrow. Coffee prices have been under pressure during the recent sessions falling more than 11 % from the highs Short players participation has been attracted because of the heavy spec liquidation and origin selling. Technical factors and the respect of the support levels discouraged additional selling today, and at the same time triggering the short covering. The diminished commercial selling helped the market. Dollar weakness added lending support to the commodities with the dollar index losing 0.4%. The Brazil’s real gained 1.3 % before the dollar, trading at BRL5.0170.
The Robusta market posts a resilient performance once again holding support resting at nearby averages just below the phycological $1600 marker basis Sep21. The market has now formed a solid baseline at $1592 as values have failed to attract sustained selling at the lower end of the recent range, with both origin and spec pressure unwilling to track weakness. This has allowed primary focus to shift back toward July21 management as first notice day approaches with the overnight exposure 17,879 lots nearing the current certified stock levels standing overnight at 15,276, with the market waiting to see if a financing roll is registered via EFP over coming days indicating unchanged certified ownership.