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Daily Coffee Report - 07/10/2024

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Coffee Futures Close Lower

 

Coffee futures took a breather today, with the margin update yesterday the likely culprit as open interest in arabica printed at a one month high of 221,963 contracts, including 5,326 new longs yesterday. Arabica prices were down as much as 7.55 while robusta was seen 190 lower with both recovering for the close. Commercial flow was muted as many market participants were stuck digesting yesterday’s move.

Today the arabica options market came back to life, and in general we have seen more interest in the coffee markets since July 5th, something that was severely lacking during the month of June. A 1000 lot block of U/Z arabica CSO 0.0 puts caught our eye today, interested to see if the buyer will accumulate a larger position below the market or if this is a one off.

Cecafe export data was released after the close today. The 23/24 Brazil coffee marketing year ended with a record of 42.9 million bags of green coffee exported – a record that is largely in part to a boom in conilon exports, totaling 8.1 million bags. This is a 457% increase from the 1.4 million bags exported in 22/23 and a 73% increase from the 4.7 million bags exported in 20/21, the previous record year for

Brazilian coffee exports. Arabica exports totaled 34.7 million bags, a 14.43% increase from 22/23 and a 6% decrease from 20/21.

Month to month exports from May to June 2024 fell 755,758 bags (-18.6%) to a total of 3.2 million bags of green coffee. Arabica exports fell 697,025 bags, while conilon exports fell only 58,553 bags. Logistics out of Santos was cited among the issues behind the slowdown in exports.

At the time of writing

USDBRL 5.4156 -0.05%

USDCOP 3970.5 -1.92%

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ICE Arabica

Volume:

43,946

 

ICE Robusta

Volume:

15,339

 

Brazil Arabica

Volume:

857

Arabica-Brazil Arbitrage

Arabica-Robusta Arbitrage

Arabica Switches

Robusta Switches

Related tags: Coffee

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