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Coffee Calendar Spreads are On Fire

Yesterday, #Arabica #certifiedstocks dropped an impressive 70k and the #calendarspreads are going bananas. Calendar spreads in Arabica #coffeemarket are notoriously boring (unlike #Robusta), and yet this year spreads have been ANYTHING BUT BORING. #Spec interest in the spreads has driven a lot of the #bullish #price action there but this has been instigated by some very real #fundamental concerns.


In this article, we will look at what the calendar spreads are, why they reflect the #fundamentals so well, what the relationship to the #certifiedinventory is, and why they are rallying so hard.


The short answer to why spreads are rallying is that calendar spreads are known for being a fundamental #trade, and the fundamentals are strong. However, there is a lot more to the story here. Let’s begin by examining what the calendar spreads are, and that should help to explain why they reflect fundamentals.