Arabica Futures Under Pressure CoffeeNetwork - Arabica prices on the InterContinental Exchange were trading 4.00 lower for the March contract, last seen at 189.85. Volume was good with 8,929 contracts at the time of writing. The May contract is trading 3.00 lower at 186.50 with 6,395 contracts.
Arabica futures are under pressure this morning with liquidations by speculators who are noticing weakness against Friday’s high. Also adding pressure to the market is the March/May switch losing premium and bearish external factors, including a firm US dollar and weaker Colombian Peso and Brazilian Real. Weather in Brazil remains beneficial to the crop, with good rainfall reported over the weekend. The COT report showed funds adding long positions for a total of 33,000 lots as of January 23rd. Commercials with a net short position of 87,941 lots, nearing levels not seen since February 2022. Technically, the chart still shows the March contract in consolidation between 190 and 195. Looking ahead, StoneX is currently conducting the second part of their Brazilian crop tour. Their findings will be combined with that of the first crop tour, which took place last month, and a full report with crop forecast will be published within the next few weeks. Additionally, activity from Brazil is expected to be muted when the country celebrates Carnival from February 9 to the 14th.
Robusta futures are higher today as bullish sentiment continues to dominate the direction of the market. Concerns over tightness in supplies have seen prices remain near record highs. A pickup in selling may occur in the upcoming sessions before the Tet holiday begins on the 8th.
Commodities are mixed.
Brent Crude Oil fell 1.20% to 82.55 and Spot Gold Futures ticked 0.31% higher to 2,024.77.
The Dow Jones Industrial Average firmed 0.14% to 38,162.40 and the Stoxx Europe 600 Index was last seen at 484.62, up 0.14%.
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