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Daily Coffee Report - 08/25/2023

By: StoneX Coffee Team, Softs Coffee Miami

Coffee Markets Close Detached  
 
StoneX Coffee Team
 

Arabica coffee futures settled lower Friday after an early rally failed to attract solid buying. The most active contract for December delivery lost 115 points to end at 153.15 cents a pound. Again, rains developing for the main coffee producing areas of Brazil encouraged the bearish sentiment.  According with some weather models, significant rainfall activity is beginning to show up on the 3 to seven days forecast. If rain becomes regular, they will trigger the first flowering.  Participants of global market were following the speech of J Powell at the Economic Forum in Jackson Hole. Mr Powell said the FED is prepared to increased interest rates further, if necessary, until inflation is on a realistic course to the central bank’s 2% target. The dollar strengthened to June’s high, adding some pressure on the Latin American currencies.  Certs stocks remained unchanged at 512,753 bags. Pending grading 0.

COT (CIT) Non-commercials increased long position by 2,414 lots to 24,565 lots long and increase their short position by 7,690 lots to 55,883 lots short, with a net short position of 31,318 lots in the week to August 22nd.  

In London, the active November contract gained $31 to settle at $ 2,437 per ton. The activity was light with most of the activity driven by specs squaring books ahead of the long weekend. The London market will be on holiday Monday. Volume was significantly lower a total of 13,265 lots including 2,757 switches, open interest on sep23 contract stands at 7,933 as of yesterday 

At the time of writing

USDBRL 4.8661 - 0.35%

USDCOP 4111.8 + 0.78%

Coffeeorderdesk@stonex.com    

Miami                                                London                                Brazil                           

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

ICE Arabica

Volume:

22,742

ICE Robusta

Volume:

13,265

Brazil Arabica

Volume:

575

Arabica-Brazil Arbitrage
Arabica-Robusta Arbitrage
Arabica Switches
Robusta Switches
 
 
  • Coffee

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