Coffee Futures had a Volatile Start to the Week
Arabica coffee futures picked up where they left off last Friday and quickly built on that strength. The NY market tested well above last week's high, the main contract, Dec24 gaining 11.35 points in the first four hours, reaching a new high at 271.80. As the participants joined the session, the market seemed to have found a resistance; attempted to test the high, but fell short at 271.55 before the OI was published. Last Friday OI showed an addition of 4,734 lots to a total of 202,021 lots representing the addition of new longs in the market. From there after, the market struggled below 267, slowly giving back all gains for a negative close to the Dec24 contract of -0.90 at 258.55. Certainly, the weather in Brazil has been the major contributor to the volatility. Over the weekend, rain accumulations on Sunday were noticeable in the São Paulo and Paraná coffee regions with a range of 6-20 mm. The rain forecast now shows some rain coming for Tuesday the 24th next week. Some forecasts show accumulation in the range of 1-8 mm in areas of Minas Gerais. The high temperatures continue to present a danger with temperatures in the range of 28-42 Celsius from now to the end of the month. The switch Z/H had an outside day down with a rage of 2.30/3.25 and a settle -0.40 at 2.4.
Robusta main contract Nov24 also tested higher with a daily range of 259 and a retracement to a negative settlement of -21 at 5246. Both markets are back below the Bollinger band. Traders could remain on the sidelines as the weather also contributes to the volatility in the London market. Vietnam could experience wetter than normal weather patterns for the following weeks. The Robusta switch Nov24/Jan25 settled unchanged at 269 after trading to a high of 289.
At the time of writing:
USDBRL 5.5089 -2.24%
USDCOP 4,226.41 +0.62%
Miami London Brazil
305-925-4847 +44-203-580-6099 +55-11-3509-5426
ICE Arabica
Volume:
50,458
ICE Robusta
Volume:
17,840
Brazil Arabica
Volume:
1,013
Arabica-Brazil Arbitrage
Arabica-Robusta Arbitrage
Arabica Switches
Robusta Switches
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