April 25 (Reuters) – Arabica coffee futures turned around and closed down 3.7 percent on Wednesday, moving in a wide 10-cent range after origin selling took the market off its highs, and triggered flurries of automatic sell orders and long liquidation.
U.S. cocoa also closed lower, following the weaker sterling and commodity complex down, while raw sugar managed to hold firm.
* May raw sugar futures on ICE inched up 0.04 cent to settle at 22.04 cents per lb.
* Most-active July ended 0.19 cent higher at 21.80 cents per lb.
* Market up on speculative buying, main feature is spread trade – brokers.
* Players moving positions out of the spot May contract with only three sessions left prior to its expiration on Monday.
* “We’re rolling,” said Country Hedging Inc. analyst Sterling Smith.
* Open interest in the May contract stood at 51,035 lots or 2.5 million tonnes of raw sugar as of April 24.
* Now-benchmark July raw sugar contract seems to be finding support near or around the 22-cents area, dealers said.
* July arabicas sank to finish down 6.75 cents, or 3.7 percent, at $1.7675 per lb.
* Volume in the July contract soared as the market dropped, reaching 18,771 lots – ICE data.
* Arabica futures were up earlier in the session, but changed course as selling from Colombia and Brazil pressured prices lower – traders.
* The market was the day’s weakest performer on the Thomson Reuters-Jefferies CRB index.
* The market turned sharply lower, with the most-active July contract moving in a wide 10-cent range.
* Its losses were extended after triggering sell-stops around the unchanged level and on spillover pressure from the commodity complex, which also turned lower – traders.
* The market saw heavy long liquidation – traders.
* “We’re getting some longs from yesterday stopped out and then continual pressure from the funds.” – floor dealer.
* July cocoa fell $33, or 1.4 percent, to close at $2,251 per tonne, an inside day.
* Market reversed lower after being unable to breach Tuesday’s four-week high at $2,312 per tonne, basis July.
* July futures fell below the 40-day moving average at $2,276 and the 100-day moving average at $2,279, after the two levels recently crossed paths.
* The market fell along with the sterling which briefly dropped against the U.S. dollar, but cocoa futures were unable to regain any upward momentum as the pound returned slightly higher.
* ICE certified stocks dropped by 18,411 bags to 5,268,519 bags on April 24. There were 265 lots certified for the May contract, more than double from the previous day’s 111 lots, with 412 lots pending grading. – ICE data.
2:01 PM SETTLE NET PCT LOW HIGH CURRENT CHNG CHNG VOL Sugar MAY 22.04 0.04 0.2% 22.00 22.42 19,476 Sugar JUL 21.8 0.19 0.9% 21.67 22.07 55,439 Cocoa MAY 2302 -23 -1.0% 2,290 2,354 4 Cocoa JUL 2251 -33 -1.4% 2,231 2,305 10,605 Coffee MAY 175.95 -6.55 -3.6% 174.90 184.25 86 Coffee JUL 176.75 -6.75 -3.7% 175.25 185.70 18,771 TOTAL MARKET VOLUME CURRENT 30D AVG 250D AVG ICE SUGAR 108,566 122,918 92,271 ICE COCOA 15,277 27,787 20,105 ICE COFFEE 28,378 29,681 20,706
(Reporting by Marcy Nicholson and Rene Pastor; Editing by Jan Paschal)