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Daily Coffee Report - 02/13/2024

By: StoneX Coffee Team, Softs Coffee Miami

Coffee Markets End Lower

 

Arabica coffee futures fell today in another volatile session.  The contract with most of the activity for May delivery settled 310 points or 1.62% lower at 188.05 cents a pound.  Volume declined to 58,278 lots, including 18,599 switches. The rolls of positions continued to dominate the activity.  The active March/May switch gained 50 points to end at 4.95 cents, however it traded up to 5.30 cents during the day reflecting the aggressive rolling of positions.  Market talks about a possible stopping of a large number of lots during the March delivery period will keep short players away from the marketplace. With only four days before the First Notice Day for the March contract they will continue to boost the premium.  The Arabica market will be closed on Monday, February 19th in observance of the Presidents Day Holiday.  Open interest fell 7,082 as of yesterday, evidencing the liquidation . Most of the liquidation however was in the March24 contact with open interest down 7,801 lots to 28,589. Brazil continues to be quiet as the country celebrates Carnival. Weather forecasts show Minas Gerais, the country’s main Arabica producing region, should receive rain and thunderstorms consistently throughout next week. Externally, the US dollar firmed on new inflation data, which is also adding some pressure to the market today. Certified stocks decreased 25 bags to 297,445 total bags. Pending grading increased by 18,405 bags to 57,259 bags. No grading done today.

Robusta May24 contract settled at $3163 -29 with a 3210/3157 range. A slow session largely dominated by small speculative selling off the back of USD strength. Very little commercial activity was noted other than sporadic scale down roaster buying. Volumes backed off with only 9k lots trading on the most active May24 contract. Nearby structured softened a touch, Mar/May saw a 115/135 range on 3.8k lots still operating within the recent range (low 101). CSO’s were very active today with the highlights being: Robusta CSO Mar24/May24 75 put traded 2500x @ 4, Robusta CSO May24/Jul24 150 call traded 1000x @ 15. Robusta CSO Mar24/May24 120 put traded 500x @ 17.

At the time of writing

USDBRL closed on holiday.

USDCOP 3927.2 +0.35%

Coffeeorderdesk@stonex.com    

Miami                                                London                                Brazil                           

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

ICE Arabica

Volume:

58,278

 

ICE Robusta

Volume:

17,281

 

Brazil Arabica

Volume:

43

Arabica-Brazil Arbitrage

Arabica-Robusta Arbitrage

Arabica Switches

Robusta Switches

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