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Squeeze in Robusta Spills into Arabica

Updated: Jul 12, 2021

(Edit: An earlier version of this article erroneously quoted the MiFiD position limits rather than the ICE Eur Delivery Limits. This has been corrected.)

Those of you following the #Robusta #market have seen why this #commodity has the nickname "GoBusta". Since Jun 21st the U/X #calendarspread this market has gone from full carry at -22 to a $24 #inversion as of 11:18am this morning. This likely reflects a "squeeze" in the market exacerbated by firm connie #diffs, #seasonality and international #freight rates. Today we even saw this spill over into a sympathetic rally in the #Arabica Mkt with the U/Z Arabica spread trading at -2.45 today.

How did this happen?