Coffee Markets Close Third Consecutive Week with Strong Gains
Arabica coffee futures ended slightly higher Friday, retreating from near previous session's highs. The most active contract for July delivery at the ICE exchange closed 75 points or 0.32% higher at 231.85 cents a pound. Speculator’s profit-taking and less commercial short covering before the first notice day Monday of the May contract contributed to reduce the recent volatility. Activity was also declined, with volume reaching 55,864 lots including 16,750 switches. The near May/July switch remained firm due to the last rolls before FND. During the week, Arabica futures rose 1,140 points or 5.17%, amid high volatility, reaching the highest price since September 2022. Last minute industry and dealers buying contributed to the rise. The firmness of the Robusta market in London also encouraged fund purchases that could now be seeing a parallel with the situation of cocoa prices, which have registered an increase of nearly 150% so far this year. Arabica prices have risen 44% over the year. Certified stocks rose 7,980 bags to 643,090 bags. Pending grading fell 7,365 bags to 48,879. Total graded: 14,780 bags. 9,015 passed (5,440 BR, 3,575 PE). 5,765 failed (3,840 BR, 1,925 PE).
COT (CIT) Non-commercials increased their long position by 3,867 lots to 72,706 lots long and decreased their short position by 1,016 lots to 19,273 lots short, with a net long position of 53,433 lots in the week to April 16.
Robusta Jul24 contract settled at $4080 +18 with a 4202/4061 range. An inside day with muted activity. Seemed participants were ‘’burnt out’’ given the week we have had. Commercial activity was muted with specs seemingly the bulk of the activity. Structure continues to weaken off with May/Jul even trading into a discount of -10 a level not seen on a front month Robusta spread since early 2023. Robusta Jul24 3500 put traded 500x @ 45, Robusta Jul24 4000/4200 callspread vs 4090Δ13 traded 250x @ 84.
At the time of writing
USDBRL 5.1966 -0.99%
USDCOP 3905.0 -0.52%
Miami London Brazil
305-925-4847 +44-203-580-6099 +55-11-3509-5426
ICE Arabica
Volume:
51,864
ICE Robusta
Volume:
22,220
Brazil Arabica
Volume:
1,173
Arabica-Brazil Arbitrage
Arabica-Robusta Arbitrage
Arabica Switches
Robusta Switches
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