Daily Coffee Report - 02/12/2024

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Coffee Markets End Lower

 

Arabica coffee futures ended slightly lower on Monday at the end of a very volatile session. The most active contract for May delivery closed 35 points or 0.18% lower at 191.15 cents per pound. After the opening specs selling pressured prices causing the May contract to fall 375 points or 1.95%. The CeCafe report, released on Friday, which showed that Brazil green coffee exports increased 45.4% year-on-year in January, a record for the month added weight to the market early. Origin activity was limited while Brazil celebrates Carnival. The March/May switch held firm, trading at one point with a premium of 5.45 cents as short players continue to roll positions. Squeeze concerns added pressure to roll positions ahead of the FND. As we have mentioned before, dealers may want to stop coffee during the March delivery period, as this coffee is the cheapest with most of them between 1 and 2 years old, and taking into account the discount for age. With five more sessions before the first day of delivery notice for the March contract, the switching activity will continue to support the nearby structure, as well as the May/July one, which is also inverted. Certified stocks decreased by 325 bags to a total of 297,470 bags. Pending grading increased 8,320 bags (BR) to 38,854 bags. No grading done today.

Robusta May24 contract settled at $3192 with a 3241/3168 range. Flat price made an attempt to break higher probing Friday’s recent high at $3233 but with little enthusiastic buyers and very little commercial buying prices slipped below unchanged. Volume was fairly inline with recent activity, just short of 13k lots traded on the most active May24 contract. Structure remained within the recent range, Mar/may seeing 3.7k lots traded between 125/141. Robusta May24 2700/2450 putspread vs 3235Δ5 traded 1000x @ 12, Robusta May24 3075/2900 fence (to the call) vs 3235Δ85 traded 1000x @ 208, Robusta May24 3300/2900 fence (to the call) vs 3235Δ62 traded 1000x @ 91, Robusta CSO Mar24/May 140 put traded 1000x @ 25.

At the time of writing

USDBRL closed on holiday.

USDCOP 3912.5 -0.19%

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ICE Arabica

Volume:

69,686

 

ICE Robusta

Volume:

23,436

 

Brazil Arabica

Volume:

1,137

Arabica-Brazil Arbitrage

Arabica-Robusta Arbitrage

Arabica Switches

Robusta Switches

Related tags: Coffee

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