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Daily Coffee Report - 07/24/2024

By: StoneX Coffee Team, Softs Coffee Miami

Coffee Futures Extend Lower

 

Arabica futures tumbled below 236.00 as the NY market came to life, trading over 1,000 lots in the U24 contract, moving from 236.00 to test support around the 233.00 area. The NY market failed to bounce above 236.65, facing additional pressure from weakness in Robusta and tracking the London market downward for the second half of the session, reaching a low of 230.55. With the Sep24 settlement down 7.95 at 231.15 and trading at new lows before the close, the market appears vulnerable to testing the next support area at 224/225. This week’s COT report could reveal whether funds continue to decrease their long positions, as the threat of cold fronts in Brazil diminishes and forecasts suggest improved rainfall. Traders will now focus on whether the market can sustain a test of the 224/225 area and whether sufficient buying interest exists to push prices back above 233, which could now act as resistance to end the week. The U/Z switch traded in a range of 1.70/1.00 today, spending most of the session at the 1.00/1.10 level and settling down 0.55 at 1.05. Certified stocks decreased by 1,072 bags to 812,306 total bags, while pending grading received an influx of 12,905 bags, now totaling 29,660 bags.

The Robusta N24 contract halved its OI to just 300 lots with one day remaining before expiration. The U24 contract tested and traded below the 4400/4350 area; as mentioned in yesterday's session, the low was 4316 and the settlement dropped by 154 to 4327. With such significant movements, the next support area could be around 4180/4295, erasing most of the gains since the beginning of the month.

At the time of writing:

USDBRL  5.6557 +1.23%

USDCOP 4048.0 +0.78%

Coffeeorderdesk@stonex.com    

Miami                                                London                                Brazil                           

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

ICE Arabica

Volume:

66,601

 

ICE Robusta

Volume:

18,356

 

Brazil Arabica

Volume:

1,218

Arabica-Brazil Arbitrage

Arabica-Robusta Arbitrage

Arabica Switches

Robusta Switches

  • Coffee

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