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Daily Coffee Report - 10/27/2023

By: StoneX Coffee Team, Softs Coffee Miami

Coffee Markets Finish Lower.
 
StoneX Coffee Team
 

Arabica futures closed lower today, at the end of a quiet session. The most active contract for December delivery settled 25 points lower at 160.95 cents a pound. Volume declined to 28,512 lots including 6.858 switches. The Dec/March switch remains inverted trading at levels around +45, with the rest of the forward curve with tendency to increase the contango. Technically, the December chart shows resistance at 168.50 and support near 156.70, that still needs to be tested. Oscillators have neutral values. In terms of fundamentals, Brazil’s weather remains beneficial for the continued development of the new crop, with light rains expected to continue throughout the producing regions for the week. During the week, Arabica futures for December delivery, lost 4.30 cents or 2.30 %. Profit taking at mid-week pared the strong rally of the last two weeks causing a sharp drop from a high of 169.05.  The slump was prompted as the short covering ended and overbought conditions fueled the action. Cert stocks down 12,291 bags to 394,175 bags. Pending grading 0. A total of 27,000 bags were decertified during the week.

COT (CIT) Non-commercials decrease long position by 2,224 lots to 31,275 lots long and decreased their short position by 15,853 lots to 33,427 lots short, with a net short position of 2,152 lots in the week to October 24.  

Robusta Jan24 contract settled at $2420 with a 2470/2400 range. Market continues lower breaking key technical levels. The selling is coming from both the specs who are selling weakness as we break the technical levels and light origin selling mainly on the Mar24 contract. Volumes also continue to fall with only 9k lots trading on the most active Jan24 contract. Structure softened with Jan/Mar seeing a 77/27 range in the last week and today a 27/36 range on 2.7k lots. Robusta Mar24 2000 put traded 1000x @ 17.

At the time of writing

USDBRL 4.9862 -0.03%

USDCOP 4117.6 -0.42%

Coffeeorderdesk@stonex.com    

Miami                                                London                                Brazil                           

305-925-4847                                  +44-203-580-6099            +55-11-3509-5426     

ICE Arabica

Volume:

28,512

ICE Robusta

Volume:

17,091

Brazil Arabica

Volume:

909

Arabica-Brazil Arbitrage
Arabica-Robusta Arbitrage
Arabica Switches
Robusta Switches
 
 
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