Coffee futures fell on Friday amid a bearish fundamental outlook for prices. The benchmark contract for December delivery closed 905 points lower or -4.8% at 169.80 cents a pound. China's covid lockdowns have raised fears of deteriorating demand. The threat of a recession in Europe and the escalation of the war in Ukraine have been adding to the bearish sentiment of the participants. On the technical side, the break of the support area at the 180 level accelerated the decline by triggering more selling by automated trading programs. Volume reached 81,990 lots, including 26,232 switches. Certified stocks fell 670 bags to 384,795 total bags. Pending grading increased by 25,095 bags to 81,744 bags.
Non-commercials invert position and are now net short by 3,084 lots in week to October 25. Robusta JAN23 contract settled at $1849 -29 with a 1883/1833 range. A new break lower with a fresh wave of selling. This time it seemed the commercial buying that had been absorbing much of the selling was not around quite in the same volume as previous sessions. Flat price volumes remain strong with 11.5k lots trading on JA23 contract and 3.4k JAN/MAR going through between 10/16. Huge day in coffee options both KC and RC. Topping the board was the JAN 1900/2000 PS LU which traded 4000X @ 33