Arabica coffee futures today continued the recent sideways trend and had a calm start to the delivery period by recent standards. The spot July24 contract settled 0.85 lower at 226.30, trading in a range of 222.50 to 228.85. Total volume reached 47,257 contacts, including 15,031 spreads. The spot contract closed yesterday with 6,760 lots of open interest yesterday, and most of the today’s 9,860 lots of contract volume was focused on book squaring ahead of the delivery period. Overall volume and open interest have trended lower over the past 4 sessions, with the market trading in a tight 6.8 range as most participants have opted to stay out of the market until deliveries begin to play out. The July/Sep spread today traded in a range of -0.65 to 0.25, with not much to note in terms of price action or flow. Arabica futures will be closed tomorrow for holiday.
Robusta futures broke lower today through last week’s low of 4073 but recovered some ground with an hour until the close as it continues to also hold a sideways trading pattern. The market is trading around moving averages, bouncing off nearby supports and resistance levels. July24 closed 55 lower at 4108 on 17,560 contracts of total volume, including 5,786 spreads. The July/Sep was on the firm side today, trading up to a high of 120 before going out at 115 premium, finding some support despite the continued flow of gradings. The July24 contract still had a hefty 20,004 contracts of open interest as of yesterday’s close – traders will be watching this number as we approach first notice day on June 25th. Today’s price action took the July/July arb to 40 cents, a high since the end of May.