Arabica futures for July delivery settled 510 points lower at 185.55 cents a pound. Speculative liquidation pressured the prices after weather news began to circulate. A cold front expected to reach the main producing areas of Brazil, the next weekend, was degraded and despite temperatures are now expected below normal they are expected above freezing not threatening the coffee trees. Heavy rains expected ahead of the front will contribute to diminish the cold weather effects. The USDA will publish the first official forecast for supply and demand for 2022-2023 on June 22nd. CoffeeNetwork will also be releasing their forecast for the period by the end of the month. Commodity markets were under pressure as the dollar firmed. The crude oil lost more than 4.0% settling at the lowest since December 2021. Concerns about the demand grow and higher than expected supplies from Russia contributed to the drop. Arabica certs fell by 25 bags to 550,354 bags. Pending grading at 4,620.
Robusta Sep23 contract settled at $2681 -21 with a 2742/2674 range. An inside day range but eventually closing lower with no follow through spec buying. Origin selling was present early in the session in small clips. Commercial spread buying was also seen scale down as the Jul/Sep broke that psychological +30 level. Generally, the price action felt more lead by speculators taking some chips off the table as near-term upside momentum slowed ahead of a very busy macro data week. Nov23 2600/2725 callspread vs sell 2300 put traded 1000x @ 0, Buy Nov23 2725 calls - Buy Jan24 2200 puts traded 1000x @ 15, Nov23 2500 puts vs 2608Δ36 traded 850x @ 117.