Arabica Futures Consolidate as Robusta Takes Center Stage
Arabica coffee futures tested the 226-support area one more time in the early hours. The remaining of the activity was driven by the Robusta market, which traded to new highs and allowed the NY market to maintain the lateral move above 230.00 on the main contract Jul24. The volume is still moderate at a total of 67,988 lots, reflecting that most of the activity is switch focused with 23,466 switches traded. Jul24 option expiration and FND are only 5 sessions and 9 sessions away. KC N/U switch traded and settled lower -0.25 at 0.95. Arabica trend above the 8-day moving average this week will keep traders vigilant for further upside action and a retest of the previous high at 237.75. If no interest is found to the upside, the recent short-term traders that added new longs could opt out with a technical signal below the 8-day moving average. Certified stocks increased by 7,945 bags now at 798,683 bags, pending grading decreased by 5.145 now at 13,504 bags. Total graded Wednesday 10,320 bags, passed 8,445, failed 1,875.
Robusta Sep24 contract settled at $4322 +138 with a 4336/4120 range. A strong rally off the lows with market breaking above the recent highs, $3 off printing a new ATH base 2nd month. Volumes were strong with over 13k lots trading on the now most liquid Sep24 contract. Nearby structure remains in strong backwardation, Jul/Sep saw a 156/130 range on 7.4k lots. The fundamental picture remains unchanged with nearby tightness particularly out of Vietnam being the leading issue. Robusta CSO Jul24/Sep24 120/70 putspread vs 137Δ22 traded 2000x @ 20, Robusta Jul24 4000/3800 putspread vs 4315Δ12 traded 500x @ 25.
At the time of writing
USDBRL 5.2969 +0.18%
USDCOP 3934.5 +0.17%
Miami London Brazil
305-925-4847 +44-203-580-6099 +55-11-3509-5426
ICE Arabica
Volume:
67,988
ICE Robusta
Volume:
26,034
Brazil Arabica
Volume:
427
Arabica-Brazil Arbitrage
Arabica-Robusta Arbitrage
Arabica Switches
Robusta Switches
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