I. & M. Smith (Pty) Ltd. since 1915
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I. & M. Smith (Pty) Ltd.

Coffee Market Report

23 Sep 2019

The latest Commitment of Traders report from the New York arabica coffee market has seen the Non-Commercial Speculative sector of this market decreased their net short sold position within this market by 16.39%, over the week of trade leading up to Tuesday 17th. September; to register a new net short sold position of 42,056 Lots. This net short-sold position which is the equivalent of 11,922,689 bags has most likely been marginally increased, following the period of mixed but overall softer trade that has since followed.

The November to December contracts arbitrage between the London and New York markets narrowed on Friday; to register this at 39.25 usc/Lb. This equates to 39.89% price discount for the London Robusta coffee market.

The Certified washed Arabica coffee stocks held against the New York exchange were seen to decrease by 1,951 bags yesterday; to register these stocks at 2,313,648 bags. There was meanwhile a larger in number 3,620 bags increase to the number of bags pending grading for this exchange; to register these pending grading stocks at 18,002 bags.

The commodity markets were mixed on Friday, the US Dollar posted a mild recovery during the day. The Oil markets had an overall mixed result, Sugar, Cocoa, Coffee, Cotton in narrowly positive territory, Orange Juice, Gold, Silver, Platinum and Palladium, firm, whereas Corn, Wheat and Soybean had a lower day. The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 0.198% lower; to see this index registered at 393.69. The day starts with the U.S. Dollar steady and trading at 1.247 to Sterling, at 1.102 to the Euro and with the US Dollar buying 4.14 Brazilian Real.

The London market started the day on a softer note, followed by a start above par, for in New York. As the morning progressed both markets tracked upward in a modest volume environment, London steady in positive territory maintain levels through the second half of the session. The New York arabica market experienced a degree of volatility through to the end of the day, tracking back to par toward the latter half of the session where prices settled around unchanged on the day. The markets set the close on Friday in mildly positive territory in London which settled near to the days’ high, and on a steady note in New York neat to the low of days’ range, to set the close for the markets on Friday, as follows:

LONDON ROBUSTA US$/MT                          NEW YORK ARABICA USc/Lb.

SEP 1287 + 4
NOV 1304 + 4                                                       DEC 98.40 + 0.05
JAN 1328 + 1                                                        MAR 101.90 + 0.05
MAR 1353 Unch                                                   MAY 104.20 + 0.05
MAY 1378 – 2                                                       JUL 106.35 + 0.05
JUL 1403 – 4                                                         SEP 108.30 + 0.05
SEP 1429 – 5                                                         DEC 111.20 + Unch
NOV 1456 – 5                                                       MAR 114.10 + Unch
JAN 1483 – 5                                                         MAY 116.05 + Unch
MAR 1507 – 5                                                       JUL 117.95 + Unch