Coffee Extend Recovery
Ice Arabica coffee futures finished higher on quiet session Wednesday. The reference contract for September delivery settled 165 points higher at 218.15 cents a pound. Activity was dominated by short term specs playing both sides of the market. The Arabica market has been supported by tightening ICE inventories. Today the certified stocks decreased 8,605 bags to 718,617 bags, a 22-year low. Pending remains at 0. Also adding bullish sentiment is growing concerns about Brazil’s developing 2022-2023 coffee crop with dry weather forecasted to continue for most of the coffee belt in the coming days. Rains will need to pick up in the coming weeks in order for the crop to avoid any damage during the flowering period.
Robusta held previous day high of 2000 at the opening and tested to the downside in the first few hours making the low at 1975. As the NY market came in Robusta began to test above the 20-day moving average today at 1992, successfully braking the last two sessions high and reaching a new high at 2007. Market was sluggish for the remaining of the session trading near the 20-day moving average and making a final stretch for the close to settle unchanged on the sep22 contract at 1998. Total volume was low 8,117 lots including 863 switches.