On the early hours the continuation of previous session pressure took Arabica to new lows near the lower Bollinger band of 156.70. Later in the morning, the U.S. non-farm payrolls came out at 223K, better than the expected at 203K but lower than previous month at 263K. The dollar index took it as a sell signal and instantly
erased most of yesterdays gains giving support to the coffee market which was only aided by the Brazilian real strengthening the last three sessions. The NY market was able to trade 200 points higher on the dollar index move but with no further momentum it retraced the steps back for the settlement. The most active contract Mar23 settle 225 points lower at 158.30 cents a pound. Arabica certs stocks increased by 9,732 bags to 830,272 bags. Pending grading: 206,704. Passed 9,732. Failed 7,905. With the Euro zone CPI and the US Job claims sending mix signals today traders await fresh fundamental news.
Robusta MAR23 contract settled at $1825 -7 with a 1843/1804 range. A drift lower on low volume. Flat price drifted lower as NY experienced small spec selling. Commercial activity was very quiet on both the buy and sell side. Mar23 held a key support level at 1804 allowing for a small recovery into the closing bell. MAR/MAY remains in backwardation with a daily range of 24/31 on 1.2k lots. Sep23 1850/1650 fence (to the put) traded 600x @ -22.