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Daily Coffee Report - 11/07/2023

By: StoneX Coffee Team, Softs Coffee Miami

Coffee Closes Lower on Profit Taking
 
StoneX Coffee Team
 

Arabica coffee futures fell today as speculative profit taking weighed on the prices. The most active contract for March delivery settled 220 points or 1.28 % lower at 169.50 cents a pound.  Volume reached 83,730 lots boosted by 25,959 switches. The active nearby December/March switch lost 70 points premium to end at 1.30 cents on heavy liquidation. The speculative profit taking  was induced after the market was not able to break previous highs. Open interest increased 1,332 lots, evidencing new buyers yesterday, who were possibly nervous and disappointed with the action. On chart over bought values encouraged selling. In San Jose, Costa Rica, the Sintercafe conference will begin tomorrow. On Friday, CECAFE will release the Brazil export data for October. Preliminary report from the government showed an increase of 25% year on year. Certified stocks declined 9,640 bags to 337,915 bags. Pending grading 0.

Robusta Jan24 contract settled at $2358 -64 with a 2417/2342 range. Robusta gave up all of yesterday’s gains and more, putting us right back into the middle of the recent 2300/2400 range. Today was mostly short term long liquidation with very little commercial activity. Softer Arabica market and a much softer structure seem to be the main trigger for the sell off. Volumes were moderate with 11k lots trading on the most liquid Jan24 contract. Jan/Mar traded 3.5k lots between 36/59. Robusta Jan24/Mar24 50 call traded 600x @ 20, Robusta Jan24 2400/2500 callspread vs 2355Δ17 traded 500x @ 33, Robusta Jan24 2500/2600 callspread traded 500x @ 18.

At the time of writing

USDBRL 4.8656 -0.41%

USDCOP 3998.7 +0.50%

Coffeeorderdesk@stonex.com    

Miami                                                London                                Brazil                           

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

ICE Arabica

Volume:

83,730

ICE Robusta

Volume:

21,426

Brazil Arabica

Volume:

745

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

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