Coffee Futures Gapped Down at the Open
Arabica coffee futures gapped down at the open. The NY market was under pressure from weakness noted at the close Friday, accompanied by circulating news of good flowering in Brazil and the increase of origin fixations late last week and over the weekend, not to mention the addition of the 45,928 bags to the pending grading on Friday. Over the past three days, Central Brazil has experienced significant rainfall.
This week, the Intertropical Convergence Zone (ITCZ) will strengthen over the equatorial Atlantic, oscillating between 07°N and 11°N relative to the Equator. Combined with increased moisture in the Amazon region and a low-pressure system in southern Brazil (which has a high chance of developing into an extratropical storm later this week), this will contribute to the formation of moisture corridors.
The gap at the open was the range between the last trade on Friday for the main contract Dec24 at 255.65 and the 253.10 open today. Arabica easily lost ground to 250 where more stops were found, eventually trading a low at 248.05. Thereafter, no further selling interest was noted, the dollar index was consolidating, and coffee decided on an attempt to close the gap, stopping short with a high of 254.05. Before the settlement, the dollar index got some traction, making new highs, and the Brazilian real and Colombian peso traded weaker, generating enough pressure for coffee to get back below the 50-day moving average today at 252.35 for a settlement on Dec24 contract of -5.60 at 251.70 cents per pound. The Dec24 options have 17 days left before expiry, with most volume noted today at the 270 and 230 levels. The switch Dec24/Mar25 continues to consolidate while the switch Sep25/Dec25 retrieves from last week’s high of 6.60 trading new lows today at 5.55. Volume was moderate with a total of 39,431 lots traded including 10,558 switches.
Robusta also gaped down at the open from the last trade last Friday on the Nov24 contract at 4699 to the open today at 4652, with not much activity of its own, it opted to follow Arabica's pace. No change on the certified stocks over the weekend. The Nov24 contract OI at 7,896 and FND fast approaching next Monday. Total volume traded at 16,483 including 4,439 switches.
At the time of writing:
USDBRL 5.6957 +1.03%
USDCOP 4,285.28 +1.12%
Miami London Brazil
305-925-4847 +44-203-580-6099 +55-11-3509-5426
ICE Arabica
Volume:
39,384
ICE Robusta
Volume:
16,483
Brazil Arabica
Volume:
922
Arabica-Brazil Arbitrage
Arabica-Robusta Arbitrage
Arabica Switches
Robusta Switches
The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (“SXM”), a member of the National Futures Association (“NFA”) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI . StoneX is a trading name of StoneX Financial Ltd (“SFL”). SFL is registered in England and Wales, Company No. 5616586. SFL is authorized and regulated by the Financial Conduct Authority [FRN 446717] to provide to professional and eligible customers including: arrangement, execution and, where required, clearing derivative transactions in exchange traded futures and options. SFL is also authorised to engage in the arrangement and execution of transactions in certain OTC products, certain securities trading, precious metals trading and payment services to eligible customers. SFL is authorised & regulated by the Financial Conduct Authority under the Payment Services Regulations 2017 for the provision of payment services. SFL is a category 1 ring-dealing member of the London Metal Exchange. In addition SFL also engages in other physically delivered commodities business and other general business activities which are unregulated and not required to be authorised by the Financial Conduct Authority. StoneX Group Inc. acts as agent for SFL in New York with respect to its payments services business. StoneX APAC Pte. Ltd. acts as agent for SFL in Singapore with respect to its payments services business. ‘StoneX’ is the trade name used by StoneX Group Inc. and all its associated entities and subsidiaries.
Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. Past performance of any futures or option is not indicative of future success. Indicators are not a trading system and are not published as a specific trade recommendation. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.
© 2024 StoneX Group Inc. All Rights Reserved.
Discover more insights
