The latest Commitment of Traders report from the New York arabica market has seen the Non-Commercial Speculative sector increase their net long position by 37.85% within the market over the week of trade leading to Tuesday 19th. December 2023: to register a new long position of 23,804 lots, which is the equivalent of 6,748,329 bags. This net long position has most likely been marginally increased following the period of mixed but overall firmer trade that has since followed.

The latest Commitment of Traders report from the London Robusta coffee market has seen the Speculative Managed Money Sector increase their net long position by 6.22% within the market over the week of trade leading to Tuesday 19th. December 2023: to register a new net long position of 33,985 Lots which is the equivalent of 5,664,167 bags. This net long position has most likely been increased further following the period of firmer trade that has since followed.

The London market is closed for the day today, which shall see the New York market trading solo for a shortened day of trade.

The Certified washed Arabica coffee stocks held against the New York exchange were seen to remain unchanged on Friday, to register these stocks at 247,912 bags, with 97.80% of these certified stocks being held in, Europe at a total of 242,461 bags and the remaining 2.20% being held in the USA at a total 5,451 Bags. Of this, a total 43,837 bags, or 17.68% of the coffees registered and stored in consumer country certified warehouses of the exchange, are Brazil washed arabica, and a further 66.34% of these certified coffees, originating from Honduras. There was meanwhile a 3,643 bags increase to the number of bags pending grading to the exchange; to register 28,868 bags pending grading on the day.

The March 2024 to March 2024 contract arbitrage between the London and New York markets widened on Friday to register this at 64.12 Usc/Lb. This equates to 33.26% price discount for the London Robusta coffee.

It was a mixed but overall firmer day on the commodity markets on Friday, as the US Dollar hit close to a five month low. Greenback volatility continues ahead of the next US Federal Reserve Bank announcements. A weaker Dollar is seen to be a bullish factor for commodities traded in other currencies. The Corn, Sugar, Soybean, Wheat, Gold and Platinum markets ended the day on firmer note, while the Coffee, Cocoa, Silver and Palladium markets ended the day on a softer note. The day starts with the U.S. Dollar trading at 1.268 Sterling, at 1.101 the Euro and with the US Dollar buying 4.861 Brazil Real.

The New York and London market started the day on Friday trading on a firmer note. Both markets continued to oscillate to either side of par for the remainder of the early morning session before attracting some degree of selling pressure to see the markets trend below par during the later morning session. As the afternoon progressed, the New York and London markets continued to trend in a softer direction, weighed by selling in the markets. The markets hit a floor during the mid-afternoon session, to rebound from the lows of the day. The selling pressure started to wane towards the end of the day’s trade, to see the New York market recovering some of the earlier losses under light volumes of trade ahead of the long weekend. The London market settled on a softer note, recovering some of the earlier losses of the day.

The London market ended the day on a negative note with 87.59% of the earlier losses of the day intact, while the New York market ended the day on a likewise negative note with 18.18% of the earlier losses of the day intact. This relatively softer performance for the markets, albeit that the New York markets were seen to recover most of the earlier losses of the day to settle on a modest softer note, does little to indicate direction and one might think that the New York market trading solo for the day is set for little better than a follow through hesitant start to early trade today, against the prices set on Friday, as follows:

LONDON ROBUSTA US$/MT                 NEW YORK USC/LB.
Close: 22/12/2023                                       Close: 22/12/2023

MAR   2837 – 127                                       MAR   192.80 – 0.80
MAY   2766 – 104                                       MAY    190.25 – 0.85
JUL     2704 – 87                                         JUL      190.20 – 0.75
SEP     2662 – 75                                         SEP      190.80 – 0.65
NOV   2636 – 76                                         DEC     191.55 – 0.70
JAN    2613 – 76                                         MAR    192.65 – 0.65
MAR  2602 – 76                                         MAY    193.30 – 0.65
MAY  2595 – 76                                         JUL      193.80 – 0.65