StonexHero

Daily Coffee Report - 11/17/2023

StonexHero
Coffee Extends Fall
 
StoneX Coffee Team
 

Arabica coffee futures extended decline as speculators continued to liquidate positions ahead of the FND next Tuesday Nov 21st. Rain forecasts for the producing regions of Brazil induced sales, while weak technical performance triggered sales of programs and algorithms. The contract with the highest activity for March delivery closed with losses of 455 points or 2.5% at 166.65 cents per pound. Weather forecasts in Brazil show rains spreading across the region next week, although some models indicate that the coffee-growing regions east and northwest of Minas, ES and Bahia could end the month with some hydric deficit. Regarding technical behavior, the breaking of the lows of the last two weeks attracted spec liquidations of longs positions. Open interest fell by 4,921 lots, evidencing the large liquidations of the previous session. The dollar softened a bit, while the currencies of Brazil and Colombia were mixed. Cert stocks were unchanged at 289,699 bags. Additional 7,125 bags (Papua New Guinea and Tanzania) were added to the pending grading for a total of 14,675 bags.  The New York market will be closed next Thursday in observance of the Thanksgiving Day holiday.

Robusta Jan24 contract settled -45 at $2521 with a 2582/2498 range. Market failed to find support as Arabica slipped lower. Previously we have seen some speculative Arb selling which has lent some support to Robusta, but this was not the case today. Commercial selling was present but also much less than seen during the week. Outright volumes remain weak with on 9k lots trading on Jan24. Structure remained fairly unchanged with Jan/Mar seeing a 70/94 range on 3.8k lots. Robusta Jan24/Mar24 20 put traded 1350x @ 8, Robusta May24 2600/2250 fence (to the call) vs 2425Δ64 traded 500x @ 9.

At the time of writing

USDBRL 4.8900 + 0.53%

USDCOP 4089.3 +0.08%

[email protected]    

Miami                                                London                                Brazil                           

305-925-4847                                  +44-203-580-6099            +55-11-3509-5426     

ICE Arabica

Volume:

45,557

ICE Robusta

Volume:

21,497

Brazil Arabica

Volume:

823

Arabica-Brazil Arbitrage
Arabica-Robusta Arbitrage
Arabica Switches
Robusta Switches
 
 
Related tags: Coffee

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

Our subscribers have access to comprehensive market analysis from StoneX spanning commodities, equities, currencies and more.
See why StoneX is a partner of choice

Let’s get connected

To learn more about how our customized financial solutions can help you stay one step ahead in the global markets, contact our team today.

Select your location

Contact us
+
!

By submitting this form, you are sending StoneX Group Inc. and its subsidiaries your personal information to be used for marketing purposes. View our  Privacy notice  to learn more.