Arabica coffee futures corrected lower Friday by remained inside the recent consolidation range. The December contract settled 310 points lower at 220.45 cents a pound. Volume increased a little but continued weak. A total of 20,065 contracts traded including 3,743 switches. The nearby December -September switch ended steady at 6.35 cents premium. Markets in general fell on concerns about a global recession. The dollar continued to advance with the index posting new fresh two-decade highs. The British pound plummeted to a 37-year low, and the euro to a 20-year low. In Latin America, the real dropped 2%, despite a central bank selling $2.0 billion in FX intervention. The Colombian peso fell near 1.0% as the economic outlook decrease, and investors look for a safe-haven dollar. Arabica prices underwent volatile sessions this week. Daily volumes have declined considerably as commercial activity remains limited as strong differentials and the
backwardation keep commercials away from the “C”. The certs stocks decrease 13,042 bags to 472,006 bags. Pending 320 bags. No grading today. A total of 60,442 bags were withdrawn from the exchange this week.
Robusta NOV22 contract settled at $2232 -6 with a 2239/2211 range. Extremely quiet day with a tight range. Much like yesterday we found technical support on the 40-day moving average and resistance at the middle Bollinger band at 2239. Volume was poor with 4.7k lots on NOV22 trading and 1.6k NOV22/JAN23 going through between 11/14. The most excitement from the day was the NOV22 2250/2150 strangle LU traded 750x @ 75. Little commercial activity across the broader commodities basket the whales are getting nervous with US inflation expectations breaking the lowest level in 12 months.