The latest Commitment of Traders report from the New York arabica market has seen the Non-Commercial Speculative sector cut their net short position within the market by 8.87% over the week of trade leading up to Tuesday 30th. June: to register a new net short sold position of 25,214 Lots which is the equivalent of 7,148,057 bags. This net short position has most likely been decreased, following the period of mixed but overall firmer trade that has since followed.

The National Coffee Growers Federation in Colombia have reported that the country’s coffee production for the month of June was 151,000 bags or 12.47% higher than the same month last year, at a total of 1,362,000 bags. This has contributed to the countries cumulative production for the first nine months of the present October 2019 to September 2020 coffee year to be 362,000 bags or 3.50% higher than the same period in the previous coffee year, at a total of 10,704 ,000 bags.

The National Coffee Growers Federation in Colombia have also reported that the country’s coffee exports for the month of June were 13,000 bags or 1.17% higher than the same month last year, at a total of 1,123,000 bags. This has contributed to the country’s cumulative coffee exports for the first nine months of the present October 2019 to September 2020 coffee year to be 814,000 bags or 8.22% lower than the same period in the previous coffee year, at a total of 9,085,000 bags. These exports numbers are similarly reported, to have registered a decline due to restrictions put in place as part of the nationwide efforts to combat the spread of the Covid-19 virus.

The Ivory Coast as west Africa’s leading robusta coffee producer, have reported that their coffee exports for the month of May were 77,350 bags or 49.64% lower than the same month last year, at a total of 78,467 bags. This has contributed to their country’s cumulative coffee exports for the first five months of 2020 to be 103,433 bags or 18.89% lower than the same period last year, at a total of 444,133 bags.

The September to September contract arbitrage between the London and New York markets narrowed yesterday; to register this at 44.85 usc/Lb. This equates to 45.70% 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 3,983 bags yesterday to register these stocks at 1,652,064 bags, with 92.9% of these certified stocks being held in Europe at a total of 1,535,023 bags and the remaining 7.1% being held in the USA at a total of 117,041 bags. There was meanwhile a smaller in number 3,792 bags increase to the number of bags pending grading for this exchange; to register these pending grading stocks at 24,549 bags.

It was a neutral day overall on the commodity markets yesterday, to see the overall macro commodity index taking something of a sideways track for the day. The Cocoa market ended the day on a positive note, while the Coffee and Sugar markets ended the day on a softer note. The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 0.2820% higher; to see this index registered at 370.3428. The day starts with the U.S. Dollar steady, trading at 1.249 to Sterling, at 1.130 to the Euro and with the US Dollar buying 5.354 Brazilian Real.

The London and New York markets started the day yesterday trading on a modest negative note, both markets continued on this soft track into the early afternoon trade. As the afternoon progressed the New York started to attract a further degree of selling pressure to accentuate the losses for the day, while the London market followed suit in a more sedate manner. The late afternoon session saw both the New York and London markets close near to the lows of the day.

The London market ended the day on a negative note and with 88.88% of the earlier losses of the day intact, while the New York market ended the day on a likewise negative note and with 84.16% of the earlier losses of the day intact. This very soft close does little to indicate direction and one might think the markets are due for a hesitant start to early trade today, against the prices set yesterday, as follows:

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


SEP 1175 – 24                                                                         SEP 98.15 – 5.05
NOV 1194 – 23                                                                       DEC 100.90 – 5.00
JAN 1212 – 22                                                                        MAR 103.10 – 4.85
MAR 1230 – 23                                                                      MAY 104.35 – 4.70
MAY 1250 – 24                                                                      JUL 105.60 – 4.65
JUL 1267 – 27                                                                         SEP 106.85– 4.55
SEP 1278 – 31                                                                         DEC 108.55 – 4.45
NOV 1294 – 33                                                                        MAR 110.20 – 4.35