Coffee Extends Downward Correction
Arabica prices on the InterContinental Exchange settled lower on Tuesday on spec selling. The active contract for July delivery settled 580 points or 2.5% lower at 221.85 cents a pound. Volume reached 44,020 lots including 10,025 switches. The market recovered from a low of 220.25 as good support emerged below. Last week a strong reversal after the market posted a one and a half year high triggered profit taking that has continued until today. The open interest declined 1,053 lots as of yesterday evidencing the action. Absence of commercial buying allowed prices to fall without any significant support. Cert stocks increased by 7,860 bags to 647,530 bags. Pending grading added 2,800 to 57,864 bags. A total of 9,895 bags were graded toady. Passed grading 7,860 bags, failed 2,035 bags.
The Robusta terminal ends the session only marginally lower despite observing heavy losses in the ‘C’ contract. The Jul24 contract closed at $4117 -$10, trading a range of 4076/4186. This was reflective in the July/ July arbitrage moving back to 35 cents as the Robusta terminal struggles to find natural sellers following the recent hedge lifting. The roasting sector took advantage of the intraday weakness with consistent buying $25 below the previous settlements in both July24 and Sep24 as risk and finance departments continue to fear the upside.
At the time of writing
USDBRL 5.1301 -0.72%
USDCOP 3903.0 -0.22%
Miami London Brazil
305-925-4847 +44-203-580-6099 +55-11-3509-5426
ICE Arabica
Volume:
44,020
ICE Robusta
Volume:
20,446
Brazil Arabica
Volume:
805
Arabica-Brazil Arbitrage
Arabica-Robusta Arbitrage
Arabica Switches
Robusta Switches
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