The coffee futures market ended lower on Tuesday, leaving participants disappointed by its technical performance. The most active contract for May delivery settled 315 points lower at 173.75 cents a pound. Volume reached 42,818 lots, including 12,476 switches. There were no fundamental news developments to explain the decline, leaving participants uncertain about future market activity. The bearish sentiment weighed on prices as traders were hesitant to commit to long positions. Going forward, traders will be watching for any news that could sway the market to help them determine the best course of action. Certified stocks were unchanged at 747,853 bags. No coffee is pending for grading.
Robusta reverses intraday gains to end the session nearly 1% lower, following the markets failure to attract a fresh element of buying above the previous high. Immediate buying into both May 23 and May 23/July 23 saw spot structure rally $15 to a $63 premium, with origin returning as firm sellers into both July 23 and September 23. After the initial drive to the upside failed, a constant flow of commercial pressure directed values slowly lower into the later stages as nearby speculative longs covered a layer of exposure into limited bear market support. Technically speaking, upside trend strength has weakened following today’s performance, with oscillators nearing overbought territory. This will place the speculative longs on high alert, as most of the systematic longs will reverse should the market be unable to re-engage the upside trend strength swiftly tomorrow, with initial support resting at $2139 on May 23.