Coffee Futures Reject Early Attempt Lower
Arabica coffee futures traded for a third consecutive session with a range above 10 cents. Today we saw a range of 12 cents on the main contract Dec24, on the early hours pressure was felt on continuation from yesterday’s activity at the close and supported by the dollar strengthening and a weaking Brazilian Real. The story repeats itself as the NY market came in after the first 4 hours, both the Dollar and the Real turned around and gave back support to Arabica. The Dec24 contract saw good support above 261.00 and as mentioned yesterday, resistance was noted at the 267.00 level. The remainder of the session was spent trading inside this 6 cents range for a settlement of +5.95 at 264.50 above the upper Bollinger band. Brazil's weather forecast remains almost unchanged, hot until the end of September with scattered showers in the south of Paraná. Tomorrow is the expiration of the Arabica Sep24 contract and today OI still showed 54 lots. The switch Sep/Dec traded 3 lots all day in a range of 0.50/2.95 and a settle at +0.50.
Robusta and Arabica mirror each other’s activity. No tenders were observed last night on either side. The Robusta Sep24 contract now holds 308 lots of OI and the expiration is Wednesday of next week. Traders’ attention is on tomorrow FOMC announcement, at the same time will keep an eye on the Arabica Dec/Mar and the Robusta Nov/Jan spreads which seem weaker today, testing new lows. Any technical signal could call for a lower test.
At the time of writing:
USDBRL 5.4804 -0.45%
USDCOP 4,205.25 -0.50%
Miami London Brazil
305-925-4847 +44-203-580-6099 +55-11-3509-5426
ICE Arabica
Volume:
37,587
ICE Robusta
Volume:
14,747
Brazil Arabica
Volume:
799
Arabica-Brazil Arbitrage
Arabica-Robusta Arbitrage
Arabica Switches
Robusta Switches
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