Arabica Futures Consolidate Higher CoffeeNetwork - Arabica prices on the InterContinental Exchange were trading 1.55 higher for the March contract, last seen at 190.80. Volume was light with 7,929 contracts at the time of writing. The May contract is trading 1.40 higher at 187.45 with 6,286 contracts.
Arabica futures are higher today in a session marked with light activity. The market continues to be helped by the strength in the Robusta market while consolidating inside the previous session’s range. The H/K switch is slightly better today, attracting some spec buying. The structure will remain with backwardation, from now until the end of Q3.
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. We also have the release of Q4 and full year 2023 financial reports for many of the major coffee companies, which should shed some light on demand.
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. The number of job openings surged by 101,000 from the previous month to 9.026 million in December 2023, the highest in three months and above the market consensus of 8.75 million
Brent Crude Oil rose 0.28% to 82.63 and Spot Gold Futures ticked 0.45% higher to 2,042.43.
The Dow Jones Industrial Average dipped 0.035% to 38,320.10 and the Stoxx Europe 600 Index was last seen at 485.77, up 0.19%.
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