Arabica Consolidates, Robusta Adjusts Down
Arabica futures ended higher on Tuesday as the recent fund liquidation appears to have eased reaching a more suitable level. The July contract settled 145 points higher at 196.65 cents a pound. Early selling put some pressure on the prices, however the market recovered after it failed to attract solid selling. The proximity to a support area and over sold conditions discouraged shorts to add positions, at the same time encouraging short term players to reverse positions. The open interest increased by 1,146 lots as of yesterday, confirming new shorts entering the market. The 194/192 level on the July chart reversed roll offering now good support after a strong resistance area since last January was in place. Fundamentally, the market will remain focused on the harvesting of Brazil’s crop. So far, the dry weather is anticipated to contribute with the harvest and no delay are expected. Preliminary data showed that the country’s coffee exports were 66% higher in April year on year, although official data from CeCafe will not be released until Monday. Cert stocks increased by 14,465 bags to 701,423 bags. Pending grading down 875 to 118,852 bags. A total of 16,065 bags were graded. Passed 14,465, failed 1,600.
Robusta Jul24 contract settled at $3,378 with a 3440/3261 range. Market gapped $113 lower this morning with non-commercial long liquidation being the name of the game. With London being shut Monday and NY trading 5.5c lower this was a trigger for big MOO sell clips to come into Robusta. Commercial buying was noted in light sporadic volumes, very similar to previous sessions. Outright volumes were impressive with over 21.5k lots trading on the Jul24 contract alone. Structure remained fairly in line with Jul/Sep seeing a 69/82 range on 5.4k lots. Option market was also extremely busy with highlights shown: Robusta Jul24 3800/3200 fence (to the put) vs 3375Δ50 traded 4000x @ 43, Robusta Jul24 2600 put traded 2100x @ 8, Robusta Jul24 4000/3600 putspread vs 3375Δ22 traded 2000x @ 334, Robusta Sep24 3500/4100 callspread vs 3305Δ24 traded 11000x @ 123.
At the time of writing
USDBRL 5.0700 -0.13%
USDCOP 3888.2 -0.16%
Miami London Brazil
305-925-4847 +44-203-580-6099 +55-11-3509-5426
ICE Arabica
Volume:
66,971
ICE Robusta
Volume:
36,688
Brazil Arabica
Volume:
484
Arabica-Brazil Arbitrage
Arabica-Robusta Arbitrage
Arabica Switches
Robusta Switches
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