Coffee Ends Firm
Arabica coffee futures settled firm Wednesday supported by the strong Robusta market that posted a new historical high. The active July contract closed 405 points or 1.8 % higher at 225.90 cents a pound. Volume was moderate reaching 40,401 lots including 8,724 switches. The active July – September switch remains firm adding 10 points as the forward curve get back to backwardation. The constructive technical outlook of the “C” contributed with the positive sentiment as good support below the 220 encouraged speculative buying. A possible double bottom pattern on the charts could suggest a recovery to the recent highs. According with local sources in Brazil, the volume of the new Robusta crop for Espiritu Santo and Rondônia, is smaller and quality lower than the normal for the beginning of the harvest. A report by Reuters mentioned that due to extremely high temperatures yields of Robusta are lower than expected and beans smaller than usual. The dollar firmed ahead of the US GDP data. The real of Brazil lost 0.8% and the Colombian peso 1.0%. Cert stocks added 5,142 bags to 652,672 bags. Pending grading down 1,930 bags to 55,934 bags. A total of 10,080 bags graded today. Passed 5,390 (2,560 BR; 2,280 NI; 550 PE. Failed 4,690 (1,920 BR; 570 NI; 2,200 PE).
The Robusta terminal ends the session over 6% higher, July24 contract settled at $4266 +149, as last minute May24 fixations drive heavy gains in front of FND. This occurs amid an unchanged backdrop with origin pressure nearly completely absent whilst technically the market remains very dynamic, driving further narrowing in the arbitrage (July/July24 32.5 cents). Working exposure in May24 stood overnight at 2,211 lots with 1,880 lots trading today, which should effectively draw to a close the May24 contract before we enter FND tomorrow with not material change in certified stock ownership.
At the time of writing
USDBRL 5.1504 +0.46%
USDCOP 3938.9 +1.02%
Miami London Brazil
305-925-4847 +44-203-580-6099 +55-11-3509-5426
ICE Arabica
Volume:
40,401
ICE Robusta
Volume:
23,784
Brazil Arabica
Volume:
886
Arabica-Brazil Arbitrage
Arabica-Robusta Arbitrage
Arabica Switches
Robusta Switches
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
