Arabica coffee futures finished a little lower after consolidating near recent lows. The benchmark contract for December delivery settled 40 points lower at 190.50 cents a pound. The activity was boosted by spreads trading. Volume reached 41,387 contracts including 13,557 switches. Speculative buying supported the market as the fund’s liquidation appeared becoming to an end. Last Friday’s COT report showing the funds reducing the net long position by more than 18,000 lots as of last Tuesday is an indication that the fund’s position could be almost flat by the end of the week. Oversold prices discouraged the speculative selling as well. The certified stocks declined 1,712 bags to 388,865 bags. Pending grading: 646 bags. No grading today.
Robusta JAN23 contract settled at $1953 -43 with a 2022/1946 range. Flat price broke recent lows with continued speculative selling coupled with light commercial selling. Both markets tried to hold on to early gains but once the US came online the tone was reversed. Volumes were strong with 11k Jan23 trading and 3.3k lots of Nov/Jan going through which is expected to further reduce the Nov22 OI ahead of FND on Wednesday. Option market was a lot quieter vs previous sessions with the most notable trade being 250x JAN 1900 p LIVE @ 50 and 250x Jan23 2200/1850 STRANGLES LU @ 54.